Identify the factors that lead to market failure, focusing on public goods, merit and demerit goods, external costs and benefits, monopoly power abuse, and factor immobility, along with relevant examples.

Quick explanation

Identify the factors that lead to market failure, focusing on public goods, merit and demerit goods, external costs and benefits, monopoly power abuse, and factor immobility, along with relevant examples

• This point belongs to Market failure, especially Market failure outcomes.
• You need to be able to identify the factors that lead to market failure, focusing on public goods, merit and demerit goods, external costs and benefits, monopoly power abuse, and factor immobility, along with relevant examples.
• The key ideas to know are Describe, Explain, and Discuss.
• Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.