... desirable. However, it is not enough to merely show a problem with the market. One must also show that the government could do better than the market. This requires a two-step process. First, problems with the market have to be identified. Secondly, the effects of possible government intervention must be evaluated. Only then can the market's shortcomings be compared with governmental policies ... always work well as a mechanism for selling. They are: licensing may result in a firm's giving away its know-how to a potential foreign competitor, licensing does not give a firm the tight cont...

• Word Count: 889
• Approx Pages: 4
• Grade Level: Undergraduate