Externalities and public goods

  4. Can a market work if it is not perfectly competitive? Will it reach equilibrium price? If a price is not at equilibrium will the result be more or less surpluses and shortages of goods and services than if at equilibrium? 5. What is meant by externalities and public goods? Does a market economy address externalities and public goods? What role, if any, can government have in addressing externalities and public goods?