Consider the market for car alarm systems (a part of a car that honks when someone tries
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Question:
Consider the market for car alarm systems (a part of a car that honks when someone tries to open the doors while the car is locked). What kinds of market failures might exist in this market? Give an example of a possible failure for each of the three main assumptions of the first welfare theorem of economics. (Answer in a list of three, with a one or two sentence description of each failure.)
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