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1.8.2 The meaning of market failure
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What Is Market Failure?

What Is Market Failure?

Market failure occurs when the free market, left to itself, misallocates resources. Too much or too little of a good is produced and consumed compared with the socially optimal level.

1.8.2 The meaning of market failure Lesson

  1. A Level
  2. /Economics
  3. /1.8.2 The meaning of market failure

Step-by-step lessons covering AQA A Level Economics 1.8.2 The meaning of market failure for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.