Think of a Market Example That Generates External Costs

question 100

Essay

Think of a market example that generates external costs. Is the market efficient under the current conditions? How could the government help the market to reach economic efficiency?

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Definitions:

Probability Of Failure

The likelihood, often expressed as a percentage or ratio, that a system or component will not perform its intended function within a specified period.

Service Reliability

The consistency and dependability of a service provider in delivering promised services to customers at the required performance level.

Electrical Motor

A device that converts electrical energy into mechanical energy, often used in various machines and vehicles.

Reliabilities

The degree to which a system, component, or process consistently performs its intended function under prescribed conditions over time.