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The first and second welfare theorems rely on the conditions that markets are efficient. But in the real world, markets are rarely efficient. Discuss some

The first and second welfare theorems rely on the conditions that markets are efficient. But in the real world, markets are rarely efficient. Discuss some of the situations under which the efficiency assumptions do not hold, using real world examples where possible. Given the situations identified, what might the government do when the efficiency claims do not hold

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