What are the four sources of market failure

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Question: 1. What is general equilibrium and under what conditions will it be achieved? What are the welfare consequences of general equilibrium?

2. What are the four sources of market failure? Explain how each of them causes individual profit- and utility-maximizers to make decisions that may be privately optimal but are socially suboptimal. What general policies might correct each of the instances of market failure?

Reference no: EM131908874

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