In a few paragraphs (4 to 6) brieflycompare and contrastexternalities and monopoly as potential sources ofmarket failure.

Running Head: MICRO ECONOMICS        1
MICRO ECONOMICS         5
MICRO ECONOMICS
Table of Contents
Introduction    3
Comparison and Difference between Monopoly and Externalities as Potential Sources of Failure of Market    3
Conclusion    4
References    5
Introduction
Market failure occurs in an economy when each of the individuals makes a suitable decision for themselves correctly in the monopolistic market. Prior of the market failure the demand and supply in the market does not produces goods, where the price shows marginal advantages of consumption. It has been found that such kinds of market failure can be held by both the externalities and also in the monopoly market.
Comparison and Difference between Monopoly and Externalities as Potential Sources of Failure of Market
Market failure in an economy is a situation which occurs when the elements of price fails to mitigate all the costs and benefits, which are necessary to supply and consume goods. It can be viewed as a situation, in which an individual persists for its own self-interests. Moreover, market failure can occur when there is a downward shift in price mechanism to account all the costs and benefit, as which are necessary to provide and consume the goods....