Term
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Definition
| failure that occur when curves don't reflect the actual picture |
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Term
| demand side market failures |
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Definition
| market failures that occur due to demand curves not reflecting customer's willingness to pay |
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Term
| supply side market failures |
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Definition
| market failures that occur due to supply curves not reflecting full costs |
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Term
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Definition
| benefits the consumer receives in a transaction |
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Term
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Definition
| surplus a producer receives in selling a good at a higher price than needed |
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Term
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Definition
| losses due to inefficiency because of supply or demand side market failures |
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Term
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Definition
| goods that have excludability and rivalry |
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Term
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Definition
| competition between companies for consumers |
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Term
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Definition
| the ability to keep a good for one consumer exclusively |
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Term
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Definition
| good that don't have rivalry or excludability |
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Term
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Definition
| the inability to have any rivals or competition |
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Term
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Definition
| it can't exclude other consumers |
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Term
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Definition
| the issue that people who would pay for a good are not due to its nonexcludability |
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Term
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Definition
| the analysis of the costs and benefits in an economic action |
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Term
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Definition
| public goods that can be marketed in the private market but aren't due to the small private market |
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Term
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Definition
| a factor external of a transaction that has not been accounted for. |
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Term
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Definition
| the idea that private bargaining can be used to settle legal matters |
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Term
| optimal reduction of an externality |
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Definition
| reducing an externality to the optimal amount to balance marginal cost and marginal benefit |
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