Markets are volatile, unstable, and unpredictable. One month they are booming, and the following month they are up in flames. Therefore, it is difficult to predict the rise and fall of the markets and invest accordingly. When there is an imbalance in the market demand and supply, it calls for a partial failure. But when the demand rises sky high, and the demands cannot be made due to very low or no production, it calls for a complete market failure.
Nowadays, it is typical for a product or service to not perform in the market. So one needs to know everything in case of market failure. That is why more and more Australian colleges and universities are focusing more on this subject and encouraging students to study this topic. Hence, more students require Market failure Assignment Help to cope with the increasing number of projects they have to deal with.
Markets fail primarily due to inequalities in allocating goods and services. There are so many segments to cater to and so many players in the market. It is not easy to predict which customer needs what product or service as their choices change frequently. And with more options come more competition. So it is not possible to pinpoint every change, and thus every failed market needs intervention. Several factors lead to market failures, they are –
These factors affect the market and cripple the pillars of a free market, resulting in an unstable market and market failure in the longer run. However, if these factors are checked and kept in control, mainly price control and enforcing proper laws and regulations, then the chance of market failure decreases.
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