Explain the circumstances under which markets do not work in a fair manner.
The circumstances under which markets do not work in a fair manner occur when producers are few and powerful, whereas consumers purchase in small amounts and are scattered. This happens especially when large companies are producing these goods.
These companies with huge wealth, power and reach can manipulate the market in various ways. At times false information is passed on through the media and other sources to attract consumers. Rules and regulations to protect consumers are needed to prevent this.