PLEASE ANSWER HIGHLIGHTED AREAS AND EXPLAIN IN LAYMAN'S TERMS.

PLEASE ANSWER ALL AND NOT JUST SOME

5 . Market efficiency and market failure Suppose that the following graph shows a free market equilibrium, with Or as the equilibrium quantity. (?) Supply PRICE Demand QUANTITY equal to greater than less than For an output level exactly at Or, the value of a unit to a buyer is the cost of a unit to a seller. Suppose a firm that produces for this market is able to dump toxic chemicals into a river next to its factory, which poisons wildlife and harms the health of nearby residents who have no business with the company. This scenario is characterized by . which is an example of an externality welfare market power market failure