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Market Failures and Governemnt

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Market Failures and Governemnt
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  • 1.Not Enough Competition:
  • You don't have anywhere else to go.
  • These prices are absurd!
  • I'm never comming here again
  • .
  • Market failures and the Government 
  • 2.Not Enough Information:
  • I'll buy evry product that I know will grow in value.
  • The government in situations like these could pass anti-trust laws, and stimulate competition in the market.
  • 3.Resources that can't, won't move:
  • 4.Too few public goods
  • The government should garantee that everyone in the market has the same levels of information, and garantee that the informations are true.
  • 5.Externalities or spoilover effects
  • The government in order to mantain and sutain a situatin where the market doesn't fail, should stimulate changes and new forms of productions and oportunities.
  • Nooo!!! I can't work in the city, even if I'm unemployed I can't do it.
  • The government in ordert o fix this market failure situation could invest more in its public goods, and listen to regional necessities.
  • These public transports really need repairs, they're falling apart.
  • The government in an attemp to fix this cause of market failure, could eventually try to analyze all the effects some decision might generate, and compensate for the bad externalities.
  • Now with this trash bin I can feel the bad smell from my house.
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