Monday, February 05, 2007

Unit 2: Market Failure: Light bulbs

This item says a Californian politician is trying to ban the sale of "normal" lightbulbs

a) Why? What sort of market failure is ther in the free market for lightbulbs?
b) What form of government intervention is he suggesting?
c) Suggest TWO other ways the government could intervene to overcome this market failure and EVALUATE the likely success of the 3 different approaches

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