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The Efficiency of a Competitive Market
*? When an competitive markets generate an inefficient allocation of the resources or market failure?
1) Externalities
2) Lack of Information
*? Government intervention in these markets increase efficiency.
*? Government intervention without market failure creates inefficiency or the deadweight loss.
The accompanying table represents the price and yearly quantity sold of ice cream cones on Sidfield Island. Price of Ice Cream Cones Quantity of Ice Cr
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