Question

What are the two elements of market failure most important and applicable to the study of cultural economics and especially to how access to some sites are priced and monitored?

Answer 1

Ans) A scenario in which the allocation of goods and services are inefficient or insufficient, can be termed as Market Failure. Certain elements that may lead to a market failure can be; competition, information, mobility of resources, externalities, and distribution of public goods. However in some cases, government policies, such as taxes, subsidies, wage and price controls, and regulations, can also create a scenario of an inefficient allocation of resources.

Cultural economics tries to study the relation between the culture and economic outcomes. The fundamental difference between the cultural economics and regular economics the process of an individuals decision making.

A situation in which there is a reduction in the human activity can lead to an ecological market failure. At times in a market, agents may achieve market power, which allows them to block mutually beneficial gains from trade from occurring. Certain markets tend to fail due to the kind of goods being traded.