Market Failure In Healthcare

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Market failure is a result of the low distribution of goods and low quality of service caused by a situation.Merit goods means are those goods and services that the government feels that people will under-consume.Such as health services and education. Health care is very expensive and individuals will provide health care through their income through an insurance policy. Low-income people without health care, government-provided private sector may not provide adequate quantity or quality of services to maintain a reasonable standard of living.Externality will lead to competition is limited, to provide inadequate merit goods, externalities will be ignored, the market will face failure, the government can not control, customers will have to pay…show more content…
There is only one suppliers of goods or services, but there are a lot of consumers, the existence of monopoly; monopoly has full control of the market, set up the prices of goods and services and supply, which makes it become a price maker; usually has a monopoly seller control products or service production and distribution service, which makes the other it's difficult for the company to enter the market, but also prevent the company to enter the market barriers; monopoly products have absolute differences, because only one supplier and enterprise can easily enter or exit, so there is no substitute products or services.(By Steven Nickolas,April9,2015 As buyers and sellers may hide information in order to achieve a better target transaction, which may contribute to imperfect competition. There are certain obstacles, which may make it difficult to enter the market, such as high start-up costs or strict government…show more content…
( When there is an adverse impact on the surrounding people, externalities are called negative externalities. Smoking is harmful to the health of smokers and the people around them.Internalising an externality involves altering incentives so that people take account of the external effects of their actions.Achieving the socially optimal output.The goverment can internalise an externality by imposing a tax on the producer to reduce the equilibrium quantity to the socially desirable quantity. Environment is the basis of human survival, more and more facts prove that the deterioration of the environment has brought serious disaster to human life. With the rapid development of industry and the concentration of urban population, air pollution and greenhouse effect, the impact of pollution on human environment is becoming more and more serious, which is harmful to people's health. Environmental problems have become one of the major problems facing the world today, the government has the responsibility to create a good living environment for

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