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.

if interdependence implies a two-way dependence, and if each partner is equally dependent on the other for success, then there is an equal commitment to the making the partnership successful. the advantage is sustainability of the relationship, the disadvantage is that decisions are "democratic" and therefore may take longer to reach and more likely to be a compromise (which is not always the best solution). as the interdependence moves away from equality, the decisions become more influenced by the more independent partner. in the extreme the relationship becomes more dictatorial and more like "master-slave". generally the relationship has less commitment in both directions and is more likely to be temporary.

if one generalizes (and one shouldn't), equity partnerships, which is probably what is implied by interdependence, can be slow to progress or change but durable. the extreme alternative, independent-dependent partnerships tend to be efficient but more fragile.

hope this but you will have to site your own evidence. : )

more than 1 person for sure