Explain the type of market failure if any in the following situations if any. e.g market power,externality?

Question

Many low income families cannot afford the 25 cost of the flu shot. Consequently, any flu outbreak be will be larger than it would be if these families could afford the shot.

An electric utility has to be very large to achieve economies of scale (i.e., produce with low average total costs). It has to be so large that in many instances it will be the only producer of electricity in an area. Once it’s the only producer, the utility can set a price much higher than marginal cost.

Answer 1

the first example is a market failure as because of the price of it some people are unable to buy it so this means that the good is a merit good and the government should provide it.

the other is a monopoly so it would be able to charge any price that it wants to as people have no other option.