The Pros And Cons Of Market Failure

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1, Market failure is a condition in which a market does not efficiently allocate resources to achieve the greatest possible consumer satisfaction. It means the market can’t allocate goods and labor services effectively, and that can influence achieve consumer satisfaction. For example, the income and wealth allocate unfair, and the problem of unemployment. The government enhances growth and stability of the economy. It provides the infrastructure and systems that facilitate economic activity while formulating regulations and controls to ensure order and fairness in businesses operations. The government may directly chip in to prop up the economy (MacKenzie, D.W. (2002-08-26). "The Market Failure Myth". Ludwig von Mises Institute. Retrieved…show more content…
On 1 April 2014, the functions of the Competition Commission (CC) and many of the functions of the Office of Fair Trading(OFT)(https://www.gov.uk/government/organisations/competition-and-markets-authority) including the CC's and OFT's merger control functions, were transferred to the CMA and these bodies abolished.
Function: It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law.

Duty: The CMA’s primary duty is to seek to promote competition, both within and outside the UK, for the benefit of consumers. Duty is to promote competition and fuel economic growth, and make more income to consumers.( "CMA Responsibilities". UK Government. Retrieved 17 March
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Independent investigation process: Mergers and markets are investigated initially at phase 1, but can be escalated when necessary to more in-depth phase 2 investigations. Decisions on merger and market inquiries referred for phase 2 investigation are taken by independent groups of panel members. Enforce penalties or provide remedies after judgment: like the ITW Ltd has been fined over £2 million because the company breaking competition law by restricting dealers from offering online discounts. because the case, AMC restricted dealers from offering discounted prices online, reducing competition across online, and denying buyers the benefit of lower prices for Foster’s commercial fridges.

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