Define what “market failure” means.
Explain why the market underproduces “public goods.”
Explain how externalities distort market outcomes.
Describe how market power prevents optimal outcomes.
Define what “government failure” is.
Review the section of your text that covers market failure and government failure. In addition, find and read two recent articles on this topic. Write a 500-750 word (approximately 2 to 3 page) paper that addresses these questions:
What are some examples of market failure and government failure?
What challenges do economies face in light of optimal allocation and public goods?
Support your conclusions with the findings from the articles and the textbook as well as any other sources you would like to use. Format the paper according to General APA Guidelines. You do not need to include an abstract but you must include a title page and a references page. These pages are not included in your word/page count.