Market Failure!

The competitive markets will allocate resources, throught he interaction of supply and demand, through the simple economics structure of buy and sell, as described by Begg;

A MARKET is a shorthand expression for the process by which households' decisions about consumption of alternative goods, firms' decisions about what and how to produce, and workers' decisions about how much and for whom to work are all reconciled by adjustment of PRICES.

This is to create what is called the 'Pareto optimum' or...

Pareto-efficient (optimum) for a given setof consumer tastes, resources and technology, if it is impossible to move to another allocation which would make the person worse off.

(Vilfredo Pareto 1909)
Basically the 'best possible arrangement',
For society in general all this mumbo jumbo with markets is at its best or most efficient when MARGINAL BENEFITS (MB) are equal to MARGINAL COSTS (MC), you then achieve...
Markets and Social Efficiency!!
Yet...
If there are external costs and benefits present in the process, unregulated markets will not produce the socially efficient level of output, then you achieve...
MARKET FAILURE!!
Which is a very over-dramatic phrase for describing all circumstances(distortions) in which equilibrium in free unregulated markets will fail to achieve efficient allocation of resources.
So we get to the causes of these,
Public Goods
These goods will not be supplied by private markets, so require public provision, (the NHS)
External Costs and Benefits (Externalities)
A common trait at the root of all environmental problems is the failure of markets to reflect ALL the costs and benefits associated with the environment.
Social cost = private cost + external costs (same for benefits)
EXTERNALITY

Arise whenever an individual's (or companies) production or consumption decision has a direct impact on the production or consumption of another individual, (without acceptance)

for example...pollution costs or the benefit arising from a farmer maintaining a hedge,
The main features of an Externality;
- The affected party can not choose the level of impact,
- It does not refer to deliberate attempts of another individual to influence another,
- It is an example of market failures,
- Two types of externalities, costs and benefits, production and consumption,
Companies can 'internalise' an Externality,
In conclusion, governments are really needs to intervene to reduce external costs, and enhance the benefits,
- Individuals and firms respond to incentives, they act to maximize profits (benefits) markets fail to create incentives for individuals to take account of the full implication of their actions, leading to environmental damage,
Policy mechanisms are aimed to improve these incentives!

The Flying Scott

Ridley Scott has been a well known corner stone of the film industry for a long time...creating a large number of hits...lets briefly glance at 3...

Glorious Basterds? P.1

Tarantino has always been hollywood's 'dark horse', a demon taking conventional ideas of cinema and perverting them into quite possibly some of the best films of the last few decades...From the raw energy expressed in Reservoir dogs to the comic book nature of Kill Bill. this man seems to be the master of taking any genres he wants and making it his own playground, and now we have his World War 2 epic....Inglorious basterds! World War two has been something of sacred ground....with Spielberg pulling our heart strings and others keeping it a subdued affair. While scenes in 'basterds gave it a Schindler's list quality, with the first chapter about the Jew hunter fitting into that mould.

The film begins with the traditional morricone-like western music which notifies you that you are in fact watching a Tarantino film. In this chapter there is a french family, being visited by 'Jew-hunter' or newcomer Christoph Waltz, who throughout the film plays the brilliant villain...who not only handles himself with a type of 'kindly' evil, but also surprises you even at the end...
The film goes on to introduced the stars: the inglorious basterds themselves who are shown as an Apache style squad of various killers...at this point something familiar pops up...the opening line out of the men in the squad is taken straight from the 'dirty dozen', an almost identical picture in themes to Tarantino...like all his films this will be stuffed full of movie references which will leave the majority of watchers confused. So the camera pans up onto a 'basterd' scalping a dead Nazi...and Tarantino's much anticipated world war 2 epic is rolling...and according to the director:

"It'll be epic and have my take of the sociological battlefield at that time with the racism and barbarism on all sides"