Many cities in the US have found that the xed costs of starting a bus service are high, while the marginal cost of adding additional riders is (usually) relatively low. As a result, a single bus company is often able to serve the city for a lower average total cost than could a number of perfectly competitive bus companies. Suppose that a rm (illustrated below) provides bus services for a city This is an example of which type of market failure? ./ market power What is the deadweight loss resulting from this market failure? v externalities public goods/common resources $0 $100 P $800 $1600 $3200 $4900