Distorted prices

Updated: Aug 20, 2021

Prices of goods and services which do not reflect the true marginal social cost of providing them. Prices may be distorted by monopoly on the part of the sellers, by legal regulation, or by failure to take account of external costs and benefits created by the production of the good concerned.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.