Advantages And Disadvantages Of 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.
Market failure describes any situation where the individual incentives for rational behavior do not lead to rational outcomes for the group. Put another way, each individual makes the correct.