Which of the following is an example of market failure?

Question

Quizplus · Accepted Answer

All of these options are examples of market failures. Negative externalities occur when the actions of a producer or consumer have harmful effects on third parties, and the cost is not included in the price of the product or service. Positive externalities occur when the actions of a producer or consumer have beneficial effects on third parties, and the benefit is not included in the price of the product or service. Public goods are goods or services that are non-excludable and non-rival, meaning that once they are provided, everyone can use them, and one person's use does not diminish their availability to others. These characteristics make it difficult for the market to provide these goods efficiently.

Which of the Following Is an Example of Market Failure