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Unformatted text preview: pareto efficient, or close i. When not pareto efficient, the market “fails” ii. However, these failures might not cause a lot of inefficiency therefore they don’t really matter f. MC (society) = MC (Private) = Price = MB (private) = MC (society) II. Purely Public Goods a. Markets often fail i. Individuals do not have an incentive to tell the truth because they know they will get what they want anyway ii. To protect intellectual property rights, owners of collective consumption goods are granted limited monopolies iii....
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This note was uploaded on 02/20/2008 for the course ECON 1110 taught by Professor Wissink during the Fall '06 term at Cornell University (Engineering School).
- Fall '06