5. Property rights and market failures

Loggers are much__________(more,less) likely to supply wood to the market if property rights are enforced.

In the presence of market failures, public policy can improve economic efficiency.

Classify the source of market failure in each case listed. Market Market Failure Power Externalv A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons. C) Q There is only one car dealership in a small town. giving the dealership the ability to inuence the price of O 0 cars