Market failure is a pretty self-explanatory term.
One of the main causes of market failure is negative externalities, in which a specific product's consumption/production bears a hidden cost to a third party.
Example of this: Cigarettes (second-hand smoke), carbon emission (environment), noise pollution, congestion.
Below is a quick video (2 mins approx) on how economies should react to these failures in the market.
One of the main causes of market failure is negative externalities, in which a specific product's consumption/production bears a hidden cost to a third party.
Example of this: Cigarettes (second-hand smoke), carbon emission (environment), noise pollution, congestion.
Below is a quick video (2 mins approx) on how economies should react to these failures in the market.