IGCSE Economics - Market failure. equilibrium which is not equal to SOCIAL OPTIMUM. This means that its ability to be used by more than one person at the same time, without any extra costs Tes Global Ltd is failure is a situation in which the free market leads to a misallocation of society's scarce resources in the sense that either overproduction or underproduction of a particular good occurs, i.e. Allocative efficiency is achieved when it is impossible to change the allocation of resources in the economy in a way that will increase the welfare of society. The imbalance causes allocative inefficiency, which is the over- or under-consumption of the good. Home Notes Economics – 0455 2.10 – 2.11 – Market Failure and Government Intervention Before we dive into what market failure is, let’s get familiar with some terms related to market failure: Public goods : goods that can be used by the general public, from which they will benefit. Public Bads. To understand this it is helpful first to discuss what is meant by a private good or service. Perfect market cost and revenue curves Topic 2. This set of notes details all the key concepts of market failure, as studied at AS/A level by those on the Edexcel Economics A course. Externalities. Indirect Tax (Slides, Activities and Notes) - Edexcel A-Level Economics - Theme 1, Business GCSE Full Revision Booklet (Exam Success Guide), Edexcel Economics Theme 3: 3.4.4 Oligopoly, Business A Level Full Revision Booklet and Exam Success Guide. This is what we look at in this section of the course. [8 marks] [8 marks] This requires a balanced response in which both the advantages and disadvantages of government interventions must be discussed. Market Failure can occur in a number of ways…