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- 5 Causes of Market Failures
- Not Enough Competion
- This is too expensive! But there arent any other stores that offer this product. So i will have to stop buying this product.
- Not Enough Infomation
- I had no idea that these products were so bad for my health. I will never purchase these again!
- The five causes of market failures and how the government could step in and help.
- Resources that can't, or won't, move
- I can’t move this factory. I guess I will have to shut it down and open a new one.
- The government could step in and help other businesses by promoting them so that more competition could arise and help the consumer not have to pay outrageous prices.
- Too few public goods
- The government could help provide more information about different products which would allow more consumers to understand the products they are buying.
- Externalities or Spillover Effects
- The government should tax companies that want to move their operation to other cities because it could affect the local economy.
- The government needs to find a way to repair issues that affect the citizens.
- This highway needs to be repaired and maintained. It's a safety issue.
- The government can fix this problem by taxing goods when production generates spillover costs.
- The noise from the airport might affect the nearby neighborhoods.
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