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What is market failure?

What is market failure?

Market failure is the inability of the market system to allocate resources efficiently. The market may still be trading and clearing, but the quantity produced and consumed may not be the quantity that gives the greatest net benefit to society.

1.6 Market failure Lesson

  1. GCSE
  2. /Economics
  3. /1.6 Market failure

Step-by-step lessons on AQA GCSE Economics 1.6 Market failure, covering 1.6.1a Market failure as misallocation of resources, 1.6.1b Government intervention, 1.6.2a Defining externalities, and 1.6.2b Positive and negative externalities. Each one builds up to exam-style questions. Build a solid grasp of supply and demand and cost/revenue calculations before tackling the evaluation-heavy policy topics.

Lessons