Market Successure: What Is A Market Failure?

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Market Failure
A market failure is a situation where free markets fail to allocate resources efficiently. Market failures can be viewed, as scenarios where individuals’ catch their own interests and then cause resources are not allocated efficiently. (WiseGEEK, 2012) Any time a market failure exists; there is a reason for possible government intervention into markets to improve the outcome.
For example, pharmaceuticals market and even the food market performance have obvious failure. In the case of government intervention, scarce resources get the reasonable configuration, and achieve the optimal configuration. Public Goods
A public good is a commodity that is nonrival in consumption and yields non-excludable benefits. (Geoff Riley, 2015) …show more content…

It is a market structure that does not meet the conditions of perfect competition. Not all competition mainly for market dominance. (Economics, Help 2016) Monopoly often leads to the allocation of resources, inefficient monopoly profits is usually seen as unfair, it is necessary for government intervention.
For example, China Telecom is an oligopoly in telecommunication market. It brings the decrease of competitiveness of company. The upgrade of industries will be slow. Interests of consumers will be damaged. The government enacts antitrust law to control market. Explanation
‘In 2008, UK Government performed the policy about reducing the UK’s greenhouse gas emissions by 80% by 2050. ’(GOV.UK, 2008)
UK Government aim to reduce the UK’s greenhouse gas emissions by at least 80% (from the 1990 baseline) by 2050.They were trying to achieve this reduction through action at home and abroad. Moving to a more energy efficient, low-carbon economy will help them meet this target. It will also help the UK become less reliant on imported fossil fuels and less exposed to higher energy prices in the future.

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