Provide a clear description of the market failure, with a reputable source supporting your description.

Identify the nature, type, and/orsource of the market failure. Some sources of market failure are listed below.

Clearly describe the impacts of the market failure onproductive and allocative efficiency.

Clearly identify who is harmed and who might benefit from the market failure (Consumers? Producers? Those in specific industries? Those in specific situations?)

Identifyat least onepossible solutionforthe market failure, and the impact of implementing this solution. (Is it likely to improve the situation?)

List the costs and benefits of implementing the potential solution, indicating whether the benefits achieved from market intervention are worth the cost of the intervention.("Costs" and benefits will be listed and described; no dollar amount is required.)

Possible Sources of Market Failure (This is not an exhaustive list - there could be others.)

Market power (collusion, entry barriers, coordinated pricing, lack of regulation)

Public goods & services

Externalities

Imperfect information

Poorly defined property rights

Income inequality distorting market input

Principal/agent