9. Property rights and market failures

Loggers are much likely to supply wood to the market if property rights are not enforced.

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

Classify the source of market failure in each case listed.

Market Failure	Market Power	Externality
A single public utilities company is responsible for supplying electricity for an entire state. As a result, the utilities company can set the price of electricity.
A house party plays music at a very high volume, disturbing other residents in the neighborhood.