When a firm offlaods some of its production costs to 3rd parties, it contributes to market failure becaue it leads to negative externality.
A firm generates negative externality when the cost of the production activities is greter than the benefits to third parties not involved in production. An example of an activity that generates negative externality is pollution.
To learn more about externalities, please check: https://brainly.com/question/26266710
