9. Market efficiency and market failure The following graph shows equilibrium in a free market, with equilibrium quantity of QE. X Demand QUANTITY PRICE Supply For any level of output equal to QE, a buyer values a unit of goods in this market the unit will cost a seller. Suppose now that a firm that produces for this market hires a private security force, reducing crime not only in their factory, but also in the small town in which it is located. This is an example of due to
9. Market efficiency and market failure The following graph shows equilibrium in a free market, with equilibrium quantity of QE. X Demand QUANTITY PRICE Supply For any level of output equal to QE, a buyer values a unit of goods in this market the unit will cost a seller. Suppose now that a firm that produces for this market hires a private security force, reducing crime not only in their factory, but also in the small town in which it is located. This is an example of due to
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Consumers, Producers, And The Efficiency Of Markets
Section: Chapter Questions
Problem 6PA
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