Interactive Glossary

BROWSE:

Market imperfections:

Situations that differ from those that characterize efficient competitive markets. Market power is inconsistent with perfect competition. Also, when consumers are not aware of the consequences of decisions on their own health or well-being (e.g., unhealthy food or unsafe products), such consumer ignorance is sometimes viewed as a market imperfection. Such imperfections provide a potential justification for government intervention (and antitrust and product labeling, in the above cases). See also market failures for another category of problems.

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