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People are willing to pay more for wild-caught fish (which are costly to catch) than for farmed fish (which are cheaper to produce) but they
People are willing to pay more for wild-caught fish (which are costly to catch) than for farmed fish (which are cheaper to produce) but they cannot tell the difference between wild and farmed fish when they see the fish in a shop. Explain in detail what is the nature of the market failure and what can happen to the market for wild-caught fish if that problem is not addressed. Could government regulation affect this outcome? (4 marks)
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