Attempts Keep the Highest / 2 8. Property rights and market failures Loggers are much _ likely to supply wood to the market if property rights are not enforced. In the presence of market failures, public policy can improve economic efficiency. Classify the source of market failure in each case listed. Market Failure Market Power Externality There is only one car dealership in a small town, giving the dealership the ability to influence the price of cars. O O A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons. O O Grade It Now Save & Continue Continue without saving