2 In 2007 the UK Competition Commission indicated that failure in the market mechanism wouldresult in both winners and losers.
(a) Explain why producers are usually the winners and consumers are usually the losers whenthe market fails. 
(b) Discuss what the government might do when there are losers because the market mechanismhas failed. 
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- Thread Starter
- 03-03-2016 13:38
- 07-03-2016 23:12
Check the mark schemes to get an idea about the answer they were looking for.
But heres a quick break down:
A) look at the types of market failure that occur.
Monopoly power abuse - Price up , bad for consumers.
Imperfect information - Generally an imbalance on the consumer side etc
B) This is asking for ways to fix market failure.
Either by legislation or altering prices