Paragraph 1
If there is no regulations for business, society and business will in a mess. Corporates
will compete in an unfair environment. Every company can get success through bribing
government officers. Also, some companies may launder the money. In order to prevent such
situations, business needs regulations. There are many complex regulations in United States
todays. It represents there are many ways to get success without fair competition. Therefore,
under these rules, companies can grow up healthily.
Paragraph 2
Externalities happens when one person affect another person’s well-being. Also the relevant
costs and benefits will not reflect in the market price. There are two externalities. Positive
Externality and Negative externality. Public Good is a product that one person can consume
without decreasing its availability to another individual and from which no one is excluded.
Market failure includes public goods and externalities.
