8. Property rights and market failures Bakers are much likely to supply pastries 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 Externa A single public utilities company is responsible for supplying electricity for an entire state. As a result, the utilities O O company can set the price of electricity. A manufacturing plant dumps chemical waste into a nearby river, poisoning the water supply for a small town O O downstream. Grade It Now Save & Continue