1. Explain why both positive and negative externalities are considered market failures?

Externalities both positive and negative lead to market failure because a product or service's price equilibrium does not accurately reflect the true costs and benefits of that product or service.

Explanation:

In Economics market failure of a product is a very vital thing. Except demand, supply and price externalities are another fact that can influence a product's market condition. Positive externalitis are those which positively influence market like well educated labor force benefited company. Similarly, negative externalitis are those which affect company adversely like pollution emitted from company affect surrounding environment and the health of nearby residents.

Therefore, positive and negative externalities both affect the consumption and market of commodity to a great extent.

Land, which according to the Anglo-Saxons, belonged to the British settlers thanks to the explorations and the discovery of territories that were inhabited by American Indians whom they called wild tribes. According to their ideology, the colonists had the right to appropriate these lands since they had established it as a law. However, the points of view differed, since the American Indians considered that the land they owned was a right of their own, which was constantly violated.