Answered

Get the information you need quickly and easily with IDNLearn.com. Find the solutions you need quickly and accurately with help from our knowledgeable community.

Suppose a firm that produces for this market employs a private security force that makes town residents, many of whom have no business with the company, feel safer. This scenario is characterized bymarket power , which is an example of

Sagot :

Tundexiidn

Answer:

Externality, market failure

Explanation:

Note: The full question is attach as picture below

This scenario is characterized by externality which is an example of market failure.

At the intersection of demand and supply curves, value to consumers is equal to cost to sellers.  When people who are not involved in the business, feel safer, there exists positive externality which results in market failure and the need for government intervention arises.

View image Tundexi
We value your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. Find clear and concise answers at IDNLearn.com. Thanks for stopping by, and come back for more dependable solutions.