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Student no 2302843 Market Failure This essay aims to give reasons why markets fail in various illustrations like Healthcare, Education and Housing and how governments could intervene to reduce this occurrence and failure. Market failure relates to a condition, in which a market does not efficiently allocate resources to achieve the greatest possible consumer satisfaction. Certain ignorance exists in all markets causing prices and supplies to differ from what they would be the consumer had the complete information. These disparities can be very large, such as paying too much for something, or having to sell something for much less than the original price and therefore making a huge loss. Another important cause of market failure lies in the destabilizing effect of "perverse" expectations, which means, demand going up and supply going down, creating skyrocket market prices. The four main market failures are public goods, market control, externality, and imperfect information. (Robert Heilbroner...

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