In what instances does a failure of competition occur?

Failure of competition is also known as market failure.

It is simply a situation where the market isn't functioning properly or we will say fails to function properly.

The failure of the market to provide goods and services for the masses/consumers.

Instances where failure of competition occur are;

- When the prices of goods and services do not reflect the cost of production reasonably,this will result in wealths being unfairly redistributed and the prices being too high.

- Failure of competition can occur when the buyers and sellers are not well informed.when there is no adequate information and enlightenment, there will be market failure because uninformed decisions will be made.

- When there is no competition, monopoly sets in and this will deny the consumers the benefit and privilege of making choices and competition leading to market failure.

- When there is resource immobility, market failure also occurs.

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