What is market failure? Explain in your own words

Q: marginal benefit equals marginal cost.

A: A choice, action, or resource allocation that benefits a person, business, or society as a whole is…

Q: Suppose a public garden is always busy. We could expect park is people using the park since the…

A: Public goods are those goods which are freely available on the market and whose use does not affect…

Q: Which of the following is an example of an externality? a. a flu shot that prevents a student from…

A: An externality can be defined as a cost or benefit that arises when goods or services are being…

Q: 5. Which of the following best describes morality? OIt is defined as the standards people use to…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: 1. Think of an environmental problem (e.g., climate change, acid rain, agricultural chemical…

A: To analyze how human activity affects the environment and vice versa, environmental economics…

Q: How would the owner respond to the negative externality caused by smokers?

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The laissez-faire price system a. Assures economic efficiency even when there are externalities. b.…

A: The Classical economists advocated that the markets are self-regulated in nature and there should be…

Q: Briefly explain what is meant by the term "externality" and how it occurs. a. What are the two…

A: The markets are the place where the consumers of various goods, and services tend to interact with…

Q: Which of the following would be classified as a situation where a third-party benefits from a market…

A: Positive ExternalityA positive externality is a condition in which the third party which is not a…

Q: 7. Beverly owns a rabbit and receives a $600 benefit from owning it. Sometimes Beverly's rabbit…

A: Before getting on to question we must first learn about few terms which we will take into use to…

Q: 1. For each of the goods listed below, discuss whether the good is likely to entail an external cost…

A: In economics, an externality, also known as an external cost or external benefit, is an indirect…

Q: Recall that the economic goal of criminal law is to minimize the sum of three things: (1) the social…

A: Given information Social cost of each criminal=$10000 The cost of trying and punishing=$25000 Due to…

Q: Identify the spillover effect in each of thé followiny Ldses dnu policy to deal with this effect. a.…

A: Here the term impaired driving means that rash driving and due to such driving, there are a many…

Q: Positive consumption externality (below) Price of educational services P₁ H D-MPB Q₁ Quantity of…

A: An externality refers to the unintended side effects or consequences of an economic activity that…

Q: The good produced emits toxic waste to a nearby river. Eco nists ēs mate thi: unintended consequence…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: QUESTION 2 The fundamental problem of economics is: a. How to get government to operate efficiently…

A: The fundamental problem of economics is The scarcity of resources relative to human wants.

Q: a. An audiobook is an example of a club good because it is and in consumption. b. In some states, it…

A: The consumed products by the households, govts and sometimes firms are called goods.Goods can be…

Q: Draw a graph showing the market for ride-hailing services in midtown Manhattan before the congestion…

A: Demand is the desire backed by a willingness to pay and the ability to pay by an individual. The…

Q: What are 4 examples of how non-rational human behavior can change an economic outcome?

A: Introduction Non-rational human behavior is behavior that is not based on logical or rational…

Q: What challenges do economies face in light of optimal allocation and public goods

A: For the most part, the public money idea manages the ideal distribution of assets involving it for…

Q: Refer to Figure 6, Panel (b) and Panel (c). Which of the following is correct? a. A tax would move…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: How would you decide "how many pizza slices to eat a buffet? Which two laws to consider?     A.…

A: Marginal analysis is a process of decision making in which an individual compares the incremental…

Q: Aisha and Sara are roommates who both benefit from having their room cleaned by a cleaning service.…

A: To get the optimal number of room cleanings each week that optimizes the overall surplus, add…

Q: 10. There are four statements about welfare economics. Which of the following statement is TRUE? A.…

A: A. Social optimal allocations need not to be pareto optimal- False

Q: 5. State whether the following are true or false and briefly explain why a. Companies spend billions…

A: Advertisement refers to the spreading of awareness about a good or service on media platforms such…

Q: Market Failure. a. State the definition of a market failure, b. List and explain the 4 causes of…

A: Answer- a.Solution-  Market Failure -  Market Failure refers to a situation or condition when market…

Q: 2. Sort these events and consequences into pairs. Match the free market transaction with the…

A: Externalities means positive or negative impact on third person due to economic activities done by…

Q: In macroeconomics 1. List and explain the three ways in which there can be market failure.  2.…

A: Macroeconomics is a branch of economics that studies the behavior and performance of the economy as…

Q: 85. All of the following would be government solutions to externality problems EXCEPT: a.public…

A: NOTE: Since you have asked multiple questions we will be answering only the first one, if you need…

Q: what are 2 assumptions that underline the conclusion that free market are efficient?

A: Free Market Economy:It is a system of the market in which prices of commodities are determined by…

Q: I) The figure below shows a market in which there is an externality. The curve S2 is parallel to S1.…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Give an example of a positive externality and an example of a negative externality that exist in the…

A: Externality refers to the spillover of benefits or costs to the third party other than the immediate…