Saturday, February 09, 2013

Unit 1: How regulation can reduce market failure: Paracetamol

Great clip from the BBC

http://www.bbc.co.uk/news/health-21378624# video
and
http://www.bbc.co.uk/news/health-21370910# article

a) In what respect would the free market for paracetamol appear to fail?
b) To what extent does this legislation appear to have reduced the market failure?
c) Suggest one other action the government could take to further reduce the market failure

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