Market_Failure_Presentation_on_research1

summery slide of market

1. Market Failure: Causes, Types, and Key Concepts Economics Lecture Presentation Prepared by: [Your Name]

2. Introduction to Market Failure Definition: Market fails to allocate resources efficiently Outcome: Overproduction, underproduction, unfair distribution Example: Air pollution from factories

3. Causes of Market Failure Imperfect competition Public goods Externalities Information failure Missing markets

4. Types of Market Failure Productive inefficiency Allocative inefficiency Equity issues (inequality) Example: Luxury goods vs lack of hospitals

5. Imperfect Competition Monopoly → High price, low output (Example: Railways, Microsoft Windows) Oligopoly → Few big firms collude (Example: Telecom in India) Monopolistic Competition → Many firms, product differentiation (Example: Restaurants)

6. Public Goods Non-excludable & Non-rivalrous Examples: Streetlights, defense, clean air Free-rider problem → people use but don’t pay Govt intervention needed

7. Externalities Negative: Pollution, traffic, smoking 🚬 Positive: Education, vaccination 💉 Market produces 'too much' of negatives and 'too little' of positives

8. Government Role Regulation (laws against pollution, safety rules) Taxes & subsidies (carbon tax, subsidy on education) Providing public goods (streetlights, defense) Competition policy (anti-monopoly laws)

9. Real-life Examples Delhi air pollution (negative externality) Polio vaccination in India (positive externality) Free-rider problem: People using public WiFi without paying Jio & Airtel duopoly (imperfect competition)

10. Conclusion Market failure = when markets alone don’t work efficiently Causes: Imperfect competition, public goods, externalities Govt plays key role in correction