the market produces a smaller qu quantity than is desired
consequences
the market produces more than what is desired
Type externalities
Positive
cost reduction ans /or production increase
Negative
cost increase and /or production reduction
MARKET FAILURES
Incomplete markets
-Absence of economic incentives
-allocation of resources impossible to control dueto their cost
-higher prices and lower quantities
-Free access
-Public goods
-asymmetric information
non compettive markets
Imperfect competition
it's divided in
Monopoly
Oligopoly
Duopoly
it is characterized by
-Princes objects of manipulation or negotiation
-heterogenity of products
-Brand recognition
situation that occurs when a good or service is not efficient
Externalities
When a market produces effects on other subjects other than seilers ans buyers who act in the.
Impacts
costs and benefits for third parties not required
inefficiency in the markets
