ECON 162 Lecture Notes - Lecture 14: Externality, Price Controls
29 Nov 2017
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Necessary conditions for the existence of markets a. b. c. Market failure-markets may not always allocate resources efficiently a. Monopolists restrict output in order to increase profits b. One party to a trade may have more information than the other party c. d. When a market lacks information about the quality of products, then that market is dominated by low quality products. Incentives change when costs can be passed on to third parties e. Costs on benefits that accrue to individuals not directly involved in the transaction f. Government failure a. b. c. d. e. f.
