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Unformatted text preview: or lost value Public goods or social goods: goods and services that bestow collective benefits on members of society. Generally no one can be excluded from enjoying their benefits. The classic example is national defense Externality: a cost or benefit imposed or bestowed on an individual or a group that is outside, or external to, the transaction Imperfect information: the absence of full knowledge concerning product characteristics, available prices, and so on Chapter 12: Choices made by households and firms Wednesday, October 05, 2011 12:07 PM Econ 2106 Page 1...
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This note was uploaded on 01/09/2012 for the course ECON 2106 taught by Professor Minjaesong during the Fall '06 term at Georgia Institute of Technology.
- Fall '06