Market Failure

Views:
 
Category: Entertainment
     
 

Presentation Description

No description available.

Comments

Presentation Transcript

MARKET FAILURE AND GOVT. INTERVENTION : 

Siddhant Sharma Shubham Rohatgi & Nikhil Manan MARKET FAILURE AND GOVT. INTERVENTION

Market Failure And Govt. Intervention : 

Market failure occurs when there is an inefficient allocation of goods and services in a market. The existence of a market failure is often used as a justification for government intervention in a particular market. Market Failure And Govt. Intervention

Reasons For Market Failure : 

Market failure occurs mainly through 3 reasons: When public goods are provided by private players. (Eg : Roadways, Defence ) The existence of monopoly power. Absence of clearly defined property rights. Inefficient provision of merit goods. (Eg : Health Services, Education) Existence of inequality in wealth among different groups. Reasons For Market Failure

Steps taken by Govt. : 

Government intervenes in this situation through: Taxation of monopoly profits (the Windfall Tax)  Regulation of oligopolies/cartel behaviour  Direct provision of public goods (eg : defence)  Policies to introduce competition into markets (de-regulation)  Price controls for the recently privatized utilities Steps taken by Govt.

THANK YOU : 

THANK YOU

authorStream Live Help