Market failure, business and finance homework help

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On Market Failure – We said that the rationale for public policy is either market failure and/or government
failure. Address the following with this rationale in mind:
a. Define market failure from the perspective of the economist and government failure from the perspective
of the political scientist (recall public choice theory) i. Which definition best fits the policy problem of the law you are studying for your final paper?
Explain why.
b. Market failures are most commonly identified with negative externalities. Provide an example of this
phenomenon as well as a pro and con of government regulation as a corrective measure.
c. Lastly, provide an example of a public good and explain why it is framed within the theory of market
failure. Be specific.

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