Understanding Factor Immobility and Market Failure

The video tutorial explains factor immobility, which can lead to market failure. It covers geographical and occupational immobility, highlighting how factors of production struggle to move between industries or locations. The tutorial discusses the impact of immobility on resource allocation and market efficiency. It also explores potential solutions, such as reducing housing market frictions, providing retraining programs, and implementing regional policies to address these challenges.

Explain the concept of structural unemployment in relation to factor immobility.

How can governments address geographical immobility?

What strategies can be implemented to reduce occupational immobility?

What is the significance of retraining and education schemes in addressing factor immobility?