a. What type of market failure would you categorize street lights that are not working?  b. Base on the question above, discuss why the type of market failure occur.  c. Suggest two relevant Government policies that would yeild the efficient outcome and explain the process through which the implementation of the policies will lead to optimal out come.

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter5: Difficult Cases For The Market And The Role Of Government
Section: Chapter Questions
Problem 13CQ
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a. What type of market failure would you categorize street lights that are not working? 

b. Base on the question above, discuss why the type of market failure occur. 

c. Suggest two relevant Government policies that would yeild the efficient outcome and explain the process through which the implementation of the policies will lead to optimal out come. 

 

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