Market Failure
INTRODUCTION TO MICRO ECONOMICS
”MARKETS FAILURE”
Preface
The existence of the market have a very important function. For consumers, the market will make it easier to obtain goods and services daily needs. As for the manufacturers, the market becomes a place to facilitate the distribution process of goods production. In general, the market has three main functions, namely as a means of distribution, price formation, and as a promotion. However, with the passage of the economic circulation, a lot of things that would happen imbalance in it. Which must all aim to make a profit as much as possible regardless of the result of the surroundings. Therefore there will be market imperfections or market failures in the run the all functions.
So I will tell various things that would pertain to the market mechanism and its failure to operate as well as the causes and solutions of market failure.
Contents
1.Market Definition and Function
The market is people who have a desire to be satisfied with money to spend and the willingness to spend it or it can be defined as a meeting place for buyers and sellers to conduct economic activity in the form of sale.
In general , the market has three main functions, namely as a means of distribution, price formation, and as a promotion.
a. Markets as a Means of Distribution The market is a function of distribution locations expedite the process of delivery of goods or services from producers to consumers. With the market, manufacturers can relate either directly or indirectly, to offer their products to consumers.
[pic][pic]
b. Market as Shaper Price The market is a meeting place between sellers and buyers. In this market sellers offer goods or services to the buyer. Buyers who need the goods or services will try to bargain the price of goods or services, so that there was a bargain between the
”MARKETS FAILURE”
Preface
The existence of the market have a very important function. For consumers, the market will make it easier to obtain goods and services daily needs. As for the manufacturers, the market becomes a place to facilitate the distribution process of goods production. In general, the market has three main functions, namely as a means of distribution, price formation, and as a promotion. However, with the passage of the economic circulation, a lot of things that would happen imbalance in it. Which must all aim to make a profit as much as possible regardless of the result of the surroundings. Therefore there will be market imperfections or market failures in the run the all functions.
So I will tell various things that would pertain to the market mechanism and its failure to operate as well as the causes and solutions of market failure.
Contents
1.Market Definition and Function
The market is people who have a desire to be satisfied with money to spend and the willingness to spend it or it can be defined as a meeting place for buyers and sellers to conduct economic activity in the form of sale.
In general , the market has three main functions, namely as a means of distribution, price formation, and as a promotion.
a. Markets as a Means of Distribution The market is a function of distribution locations expedite the process of delivery of goods or services from producers to consumers. With the market, manufacturers can relate either directly or indirectly, to offer their products to consumers.
[pic][pic]
b. Market as Shaper Price The market is a meeting place between sellers and buyers. In this market sellers offer goods or services to the buyer. Buyers who need the goods or services will try to bargain the price of goods or services, so that there was a bargain between the
References: http://abidinsuccesmen.blogspot.com/2011/01/makalah-ekonomi-mikro-kegagalan-pasar.html http://carapedia.com/mekanisme_pasar_info1995.html http://ajishida.blogspot.com/2009/04/kegagalan-pasar.html http://latansablog.wordpress.com/2012/05/01/pengertian-keseimbangan-pasar.html