2 answers
Sort By
ChatGPT
Aug 26
1. Externalities: When the production or consumption of a good or service affects third parties who are not directly involved in the transaction, leading to either overproduction or underproduction.
2. Imperfect competition: When there are only a few sellers in the market, they may collude to fix prices or restrict output, leading to higher prices and reduced consumer choice.
3. Information asymmetry: When one party in a transaction has more information than the other, leading to market inefficiencies and potential exploitation.
4. Public goods: Goods that are non-excludable and non-rivalrous, meaning that individuals cannot be excluded from using them and one person's use does not diminish the availability for others, leading to underproduction by private firms.
5. Monopoly power: When a single seller dominates the market, they can set prices higher than in a competitive market, leading to reduced consumer welfare.
6. Income inequality: When wealth is concentrated in the hands of a few individuals or groups, it can lead to market failure as the needs of the majority are not adequately met.
7. Lack of property rights: When property rights are not clearly defined or enforced, it can lead to overuse or exploitation of resources, leading to market failure.
2. Imperfect competition: When there are only a few sellers in the market, they may collude to fix prices or restrict output, leading to higher prices and reduced consumer choice.
3. Information asymmetry: When one party in a transaction has more information than the other, leading to market inefficiencies and potential exploitation.
4. Public goods: Goods that are non-excludable and non-rivalrous, meaning that individuals cannot be excluded from using them and one person's use does not diminish the availability for others, leading to underproduction by private firms.
5. Monopoly power: When a single seller dominates the market, they can set prices higher than in a competitive market, leading to reduced consumer welfare.
6. Income inequality: When wealth is concentrated in the hands of a few individuals or groups, it can lead to market failure as the needs of the majority are not adequately met.
7. Lack of property rights: When property rights are not clearly defined or enforced, it can lead to overuse or exploitation of resources, leading to market failure.
0
Google Gemini AI
Aug 26
1. Externalities
- Positive externalities: Benefits to third parties not accounted for in market prices (e.g., education, public health).
- Negative externalities: Costs imposed on third parties not reflected in market prices (e.g., pollution, traffic congestion).
2. Public Goods
- Non-rivalrous (consumption by one person does not exclude others) and non-excludable (impossible or costly to prevent people from consuming).
3. Natural Monopolies
- Single supplier can produce the good/service at a lower cost than multiple suppliers due to economies of scale or network effects.
4. Incomplete Information
- Consumers or producers do not have access to all relevant information about the product/service (e.g., product safety, quality).
5. Transaction Costs
- Costs associated with negotiating, enforcing, and carrying out contracts (e.g., search, bargaining, legal expenses).
6. Market Power
- A few firms or individuals have disproportionate control over the supply or demand of a good/service, allowing them to set prices or restrict competition.
7. Principal-Agent Problems
- Information asymmetry between principals (e.g., shareholders) and agents (e.g., managers), leading to conflicts of interest.
8. Moral Hazard
- Situation where one party has less risk than another and takes actions that benefit them at the expense of the other (e.g., insurance).
9. Adverse Selection
- Situation where hidden information leads to a biased selection of participants in a transaction (e.g., health insurance).
10. Government Intervention
- Price controls, subsidies, or regulations can distort market outcomes and lead to market failures.
- Positive externalities: Benefits to third parties not accounted for in market prices (e.g., education, public health).
- Negative externalities: Costs imposed on third parties not reflected in market prices (e.g., pollution, traffic congestion).
2. Public Goods
- Non-rivalrous (consumption by one person does not exclude others) and non-excludable (impossible or costly to prevent people from consuming).
3. Natural Monopolies
- Single supplier can produce the good/service at a lower cost than multiple suppliers due to economies of scale or network effects.
4. Incomplete Information
- Consumers or producers do not have access to all relevant information about the product/service (e.g., product safety, quality).
5. Transaction Costs
- Costs associated with negotiating, enforcing, and carrying out contracts (e.g., search, bargaining, legal expenses).
6. Market Power
- A few firms or individuals have disproportionate control over the supply or demand of a good/service, allowing them to set prices or restrict competition.
7. Principal-Agent Problems
- Information asymmetry between principals (e.g., shareholders) and agents (e.g., managers), leading to conflicts of interest.
8. Moral Hazard
- Situation where one party has less risk than another and takes actions that benefit them at the expense of the other (e.g., insurance).
9. Adverse Selection
- Situation where hidden information leads to a biased selection of participants in a transaction (e.g., health insurance).
10. Government Intervention
- Price controls, subsidies, or regulations can distort market outcomes and lead to market failures.
0
