8. Property rights and market failures Loggers are much less 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 A single public utilities company is responsible for supplying electricity for an entire state. As a result, the utilities company can set the price of electricity. A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons. Market Power O O Externality

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