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QUESTION 3 a. Briefly discuss 3 reasons why markets fail to produce efficient outcomes? (6 marks) b. Illustrate and explain the efficiency conditions for a

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QUESTION 3 a. Briefly discuss 3 reasons why markets fail to produce efficient outcomes? (6 marks) b. Illustrate and explain the efficiency conditions for a Pareto Efficient economy. (10 marks) c. Give two reasons why governments might intervene in the market's allocation of resources even if it is Parcto Efficient. ( 4 marks)

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