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Market Failure

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Running Head: MARKET FAILURE 1 Market Failure Institution Affiliation Date: MARKET FAILURE 2 At times, due to some constraints, there may be some inefficiency in production as well as the allocation of the goods and services to the consumers. When this happens, it is clear that there is a market failure. Such a situation is a significant setback to the government and thus the need to market urgent considerations on how to solve the problem. The government needs to take some measures to regulate such inefficiencies. The movement of goods and services in the market should follow a specific efficient program. However, whenever there’s a market failure, the free market will suffer such an economic situation. The government, therefore, has a role to play to put the market in the right place. Water, for instance, is one of the significant resources in the economy. However, over the last few years, the water has been polluted with not efficient allocated results regarding water pollution. Different water bodies such as rivers, lakes, and oceans continue to suffer the issue of corruption, thus increasing environmental degradation. Human activities are to blame with no treatment bei ...
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