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Concept
Market Distortions
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Summary
Market Distortions
occur when
External Factors
interfere with the
Natural equilibrium
of
Supply And Demand
, leading to inefficiencies and
Suboptimal allocation of resources
. These distortions can arise from
Government interventions
,
Monopolistic Practices
, or
Information asymmetries
, often resulting in
Welfare losses
and
Reduced market efficiency
.
Concepts
Supply And Demand
Market Equilibrium
Government Intervention
Monopoly
Information Asymmetry
Welfare Economics
Price Controls
Externalities
Market Power
Public Goods
Tax Neutrality
Malinvestment
Relevant Degrees
Price Formation and Costs 60%
International Trade 30%
History of Economic Thought 10%
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