Market failure exists when the competitive outcome of markets is not
efficient from the point of view of the economy as a whole. This is
usually because the benefits that the market confers on individuals or
firms carrying out a particular activity diverge from the benefits to
society as a whole.
Watch the video: Legal Highs
It is eight months since the British government banned the drugs that were known as "legal highs".
In the year leading up to
the ban, more than 100 deaths were linked to the drugs in the UK, along
with a rise in violent assaults in prison
Read more
Demerit goods - banning legal highs
