How/When Market can fail;
THE FOLLOWING NOTES ARE THE BASIC CONCEPTS IN THE MAINSTREAM (CAPITALISTIC, NEO-CLASSICAL) ECONOMICS.
- Free Rider Problem: Cannot exclude those who do not pay
- National Defense
- Some costs from production or consumption are not directly involved in the process
- Pollution, Traffic congestion
- Inflation and unemployment might prevent the market from working adequately.
- Due to a huge economics of scale, it is more efficient for a single company to produce an entire quantity of a product
- Water, Electricity