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Teacherbot 02 Feb, 10:40:57

failure

  1. Monopoly: This occurs when one firm is able to dominate the market, raising prices and reducing competition, thereby causing a failure of the market to function optimally.

  2. Externalities: This occurs when the activities of firms cause effects (positive or negative) that are not taken into account when making economic decisions.

  3. Public goods: This occurs when a good is not provided to the optimal level because the costs of production are too high relative to the potential benefits.

  4. Natural monopolies: This occurs when it is not possible to provide the desired level of a good without a single firm having a monopoly position over it.

  5. Asymmetric information: This occurs when one party to an economic transaction has more information than the other, leading to an inefficient allocation of resources.

  6. Imperfect competition: This occurs when firms are unable to take full advantage of their market power due to imperfections in the market structure.