Question 23 Market failure exists if O Mr. Smith cannot purchase watermelons in his town. O buyers and sellers must pay the true opportunity costs of their actions. O third parties are injured and are not compensated. the government must provide government-sponsored goods. D Question 24 In Perfect Competition, a firm cannot influence the price of the good it sells because there are a large number of firms in the industry ( each firm in the industry produces the same identical product O cost of production is unchanged advertising is expensive