Market Efficiency & Failure in Microeconomics 📉

In this video, we delve into the concepts of market efficiency and market failure. We'll explore why market outcomes may not always be efficient, despite the equilibrium outcome being the most efficient allocation of resources. We'll also examine the assumptions underlying the equilibrium outcome, such as perfectly competitive markets and the externality problem, and how they relate to market failure.


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00:00 Intro
00:22 What is market efficiency?
01:50 Externalities
02:44 What is market failure?