a. In light of the lectures and case studies, identify areas where Pakistan faces the largest market failure. Where exactly on the Edge worth box would the society be?

b. What potential market interventions/corrections would you apply to fix the market failure in the sector that you have identified? (Hint: Coase theorem)

c. What potential non-market interventions (steps that the government can take) are available to resolve the problem? Would this be a Pareto improvement or Pareto efficient outcome? Please explain your answer. Use graphical aids to explain.

Course : Public Sector Economics