Monopoly power, inefficiency, absent markets, and other factors can all result in market failure. Government is help to reduce the negative effect of that market failure such as implemented taxes and laws. An example of a market failure is music application.
What is market failure?
When we talk about "market failure," we're talking about an economy where there is an inefficient flow of commodities and services on the open market.
Inefficiency, absent markets, insufficient markets, and negative externalities are the main forms of monopoly power. audio player: All listeners hear the song, yet it cannot affect them directly. It is unable to determine whether or not a user has paid.
The government must address market failure issues brought on by additional regulations, taxes, tariffs, subsidies, and trade restrictions.
As a result, monopoly power, inefficiency and missing markets types of market failure. Government implemented taxes and laws. Ex of music app.
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