Consider the market for train travel. At certain times of the day, trains are extremely crowded going

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Consider the market for train travel. At certain times of the day, trains are extremely crowded going to major towns and cities but at other times of the day carriages are virtually empty.

a. Is this an example of market failure?

b. What externalities exist on the train system if the situation described persists?

c. Can you think of a way in which the government might step in to make the market outcome more efficient?

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Economics

ISBN: 9781408093795

3rd Edition

Authors: Mark P. Taylor, N. Gregory Mankiw

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Question Posted: Nov 04, 2024 07:00 AM

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Consider the market for train travel. At certain times of the day, trains are extremely crowded going

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Economics

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