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5 . Market efficiency and market failure Suppose that the following graph shows a free market equilibrium, with (@ as the equilibrium quantity. (?) Supply PRICE Demand QUANTITY *ARE.txt - Notepad X File Edit Format View Help The other options are: equal to, less than. For an output level below Q, the value of a unit to a buyer is greater than the cost of a unit to a seller, Ln 1, Col 44 100% Windows (CRLF) UTF-8 Suppose a firm that produces for this market is able to dump toxic chemicals into a river next to its factory, which poisons wildlife and harms the health of nearby residents who have no business with the company. This scenario is characterized by an externality , which is an example of efficiency *OTHER.txt - Notepad 0 X File Edit Format View Help This scenario is characterized by: The other option is: Market Power. Which is an example of: The other option is: Market Failure. Ln 2, Col 61 100% Windows (CRLF) UTF-8