Economics Market Failure- Group 6

What is a Monoply?

• A situation where consumer demand does not equal the amount of a good or service supplied,

• The control of an industry or service by only one company

• A firm that sells multiple products

• A firm that can use its resources for multiple products.

What is Price Fixing?

• when a firm chooses a permanent price of a product and doesn't change it irrespective to change in demand

• Saving Back on opportunity cost

• Fixing a price for the salary of a laborer forever.

• When two or more firms agree to sell the same products at the same price

What are the 2 types of mobility for resources.

• Upward

  Mobility

• Geographical mobility

• Absolute

  Mobility

• Occupational Mobility

Explain the Steps that can be taken, if the government wants to promote occupation and geographical mobility of labor.

Tags

NGSS.HS-ETS1-1

NGSS.HS-ETS1-3

Explain what to do inorder to achieve allocative efficiency?

Tags

NGSS.HS-ESS3-2

NGSS.HS-ETS1-1

NGSS.HS-ETS1-3

Define Short Termism

• When a firm produces more consumer goods than capital goods. This causes the firm to get immediate profit.

• A firm that didn't launch properly and fell short.

• It is the 5th factor of production

• Rise of a firm of low demand to high demand in a short period of time

Define the effect of short-termism

• Short termism gives long term security to the firm

• Short termism comes at the expense of long term security

• It gives a permanent boost in the firms economy

Give ATLEAST one example of a monoply.

Give atleast one example of price fixing