A manufacturer spends money developing a more efficient packaging process. Details of the process become known to other manufacturers, which use them without paying the original firm.
Explain why this activity may create market failure.
83 exam-style questions on AQA GCSE Economics 1.6 Market failure, covering 1.6.1a Market failure as misallocation of resources, 1.6.1b Government intervention, 1.6.2a Defining externalities, and 1.6.2b Positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.