Curriculum Portal

infoWhy this? Market Power and Market Failure is taught because it develops an understanding of how firms with significant market power can influence prices, competition, and consumer choice. Students explore the causes and consequences of market failure, including monopolies, cartels, natural monopolies, and labour market power, and consider their impact on consumers, businesses, and governments. Market Power and Market Failure also enables students to evaluate the role of regulation and competition policy in promoting fair competition, protecting consumers, and improving economic efficiency.

scheduleWhy now? Market Power and Market Failure is taught after Competition and Market Power because students first need to understand how different market structures operate before examining the problems that can arise when firms possess significant market power. This unit builds on earlier learning by exploring the consequences of market failure and the reasons why governments may intervene to regulate markets and protect consumers. Market Power and Market Failure develops students’ ability to evaluate the balance between free markets and regulation, providing a foundation for later study of financial markets and public policy.