contestada

When the government provides free and reduced school lunches it is trying to reduce
a market failure due to
Inequity
Market power
Externalities
Public goods

Respuesta :

Cludy2206

Answer:

Externalities

Explanation:

When the government provides free and reduced school lunches it is trying to reduce "Externalities"

What are Externalities?

Externalities refers to favorable and unfavorable effects, which are associated in the production and consumption of goods and services. It is a market imperfection where the market offers no price for such favorable and unfavorable effects.

For instance, The government provides free and reduced school lunches to the people who cannot afford the basic necessities.

Types of Externalities:

  1. Positive Externality- It results in economic gains. For example- setting up of a factory in a backward region which will help to develop that region.
  2. Negative Externality- It refers to unfavorable Economic effects. For example- the factory may cause air and water pollution in that region.

Hence, option C is correct.

To learn more about Externalities refer:  

https://brainly.com/question/4326646

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