what is the limitations of market mechanisum system
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The limitations of market mechanism include unfair competition, fall in the level of investments, creation of monopoly etc.
Market Mechanism is the process of determining the price of commodities between consumers and producers that are produced.
The limitations of market mechanism are -
As the market is an imperfect alternative, the chances of failure are more.
It does not lead to efficient competition practices.
It leads to the formation of monopoly and oligopoly.
Does not ensure that individual decisions maximize economic efficiency in terms of the interests and economic objectives of the community.
The level of investments can also fall below a social optimum
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