CENGAGE | MINDTAP Module Four Quiz 5 . Market efficiency and market failure Suppose that the following graph shows a free market equilibrium, with QE as the equilibrium quantity. Supply PRICE Wdemand QUANTITYPRIC Demand QF QUANTITY For an output level below QE, the value of a unit to a buyer is _equal to the cost of a unit to a seller. Suppose a firm that produces for this market employs a private security force that makes town residents, many of whom have no business with the company, feel safer. This scenario is characterized by an externality , which is an example of market failure Grade It Now Save & Continue Continue without saving Dollar Street - Eth...html