(a) What is market failure? List and discuss two causes of market failure. describe briefly how a government could address these market failures. (b) Discuss this normative statement: “Governments should use targeted industry policy to assist specific firms, and industries achieve sustainable competitive advantage”.
(a) What is market failure? List and discuss two causes of market failure. describe briefly how a government could address these market failures. (b) Discuss this normative statement: “Governments should use targeted industry policy to assist specific firms, and industries achieve sustainable competitive advantage”.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter2: Thinking Like An Economist
Section2.2: The Economist As Policy Adviser
Problem 2QQ
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(a) What is market failure? List and discuss two causes of market failure. describe briefly how a government could address these market failures.
(b) Discuss this normative statement: “Governments should use targeted industry policy to assist specific firms, and industries achieve sustainable competitive advantage”.
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