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Markets are quite economical at generating non-public items. The rationale guiding this is usually that producers and customers have the ideal to possession of the methods exchanged within an economic transaction involving A non-public very good. When property rights are well outlined, there'll be no problem with generation externalities.
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MARGINAL Exterior COST (MEC): refers to the additional fees connected with the usage of an extra unit of the good that are incurred by an unrelated third party.