1. Identify the type of market failure. Is it a problem of negative externalities, positive externalities, public goods, or common resources? Could government action improve economic efficiency? Clearly explain your position

2. Discuss a time when you experienced congestion on a highway, park or other public good. Why do we tend to have congestion when using public goods? What are some possible solutions for alleviating congestion on highways or in public goods like national parks?

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1 Market failure is the inability of the market to efficiently goods and services which leads to a social welfare loss Consider a company that produce... View the full answer