Explanation There are various factors that make a market imperfect. Such imperfections make it difficult to deliver a product in an efficient and fair manner. In other words, at instances where the underlying assumptions of a competitive market are not met, the optimum level of output cannot be delivered. Such a situation is known as a market failure and thus, the government is required to intervene in putting things in order. For a market to be perfect, there are certain conditions to be satisfied. Perfect knowledge, free entry and exit and perfect mobility are some of such conditions. When these conditions are not met it is difficult to provide a product or service with efficiency.For example, many patients who seek medical care services lack all the information they need. Resources are not been allocated efficiently in instances where several firms have the leverage of an industry...

7th Edition

ISBN: 9781337668279

Author: Henderson

Publisher: YUZU

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Market Equilibrium and Failure

The economy of a country or any place depends on the market demand and market supply of goods and services.

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Chapter 3, Problem 3QAP

To determine

The waymarket failures could be used as a justification for government interventions in medical care markets.

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Chapter 3 Solutions

EBK HEALTH ECONOMICS AND POLICY

Ch. 3 - Prob. 1QAP Ch. 3 - Prob. 2QAP Ch. 3 - Prob. 3QAP Ch. 3 - Prob. 4QAP Ch. 3 - Prob. 5QAP

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