Ompetitive market-consumer surplus and producer surplus

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We have learned that under the perfect competitive market, consumer surplus and producer surplus are maximized. Therefore, market is the most efficient. In some situations under an incomplete market, such as monopolist has more information (price and quantity) about the product than consumers, market will encounter a failure. That means, the market will be inefficient and there will be a loss of the total surplus. Research and give an example of an incomplete market, discuss why it is inefficient, and illustrate that is it due to a loss of consumer surplus or producer surplus?

Reference no: EM131007721

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