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Unformatted text preview: incentive Solved through internalizing the externality, tax, regulations, divide up the land or permits Natural monopoly: excludable but not rival Gov provides some natural monopoly functions such as water, electricity etc. Public pools/ice rinks are provided so that low-income people can enjoy it. Uses cost-benefit analysis to determine which goods to provide * rough estimates since people tend to lie on survey/questionnaires Human worth based on wage determinants is about 10 million Market fails to allocate resources efficiently because property rights are not well established* gov regulations are needed...
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This note was uploaded on 04/02/2010 for the course AGEC 200 taught by Professor Anwarnaseem during the Winter '10 term at McGill.
- Winter '10