Economics - Market Failure

4. a country's productive resources are used that generate the maximum benefit for all consumers and the country.
7. the addition to the total cost that occurs when one more unit of output is produced.
9. a private good with positive externalities.
10. the cost that a firm must meet (eg. rates).
13. a market with two firms (50% control).
16. large numbers of buyers and sellers are exchanging differentiated products.
19. a private good with negative externalities.
22. many buyers and sellers trade a homogenous product.
23. the maximum quantity of output from a given quantity of productive resources.
24. the extra revenue obtained by producing and selling another unit of output.

1. the state in which the allocation of goods and resources in a market is not efficient.
2. a good such as national defence, a beach or road that are non-rival.
3. indirect cost and benefits associated with the production and consumption of certain goods and services that the market fails to take into account.
4. the return per unit of output.
5. when the allocation of resources is optimal (e.g if you go past one person gains another person looses).
6. one party to an economic transaction has more knowledge then the other party
8. there are no clearly defined property rights, so no price can be attached to their use (e.g the ocean).
11. an economy responding to change consumer demands by reallocating resources to new industries or production processes.
12. the overuse or destruction of a common property good.
14. the cost incurred by a firm (eg. wages).
15. one sellar in the market (100% control).
17. small number of firms are selling differentiated products.
18. the cost per unit of output.
20. once most efficient level of production has been reached, adding an extra factor of production causes a small increase in output.
21. cost saving advantages that a firm of large size gets.