When markets do not provide us with the best outcomes in terms of efficiency and fairness, then we say that there exists market failure
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Private Costs
A producer's or supplier's cost of providing goods or services. It includes internal costs incurred for inputs, labor, rent, and depreciation but excludes external costs incurred as environmental damage (unless the producer/ supplier liable to pay. )
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Private Benefits
Private benefit is the benefit derived by an individual or firm directly involved in a transaction as either buyer or seller.
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Externalities
Are the costs or benefits that affect anyone other than the buyer or seller, they have consequences for someone else, a third party
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Other cards in this set
Card 2
Front
A producer's or supplier's cost of providing goods or services. It includes internal costs incurred for inputs, labor, rent, and depreciation but excludes external costs incurred as environmental damage (unless the producer/ supplier liable to pay. )
Back
Private Costs
Card 3
Front
Private benefit is the benefit derived by an individual or firm directly involved in a transaction as either buyer or seller.
Back
Card 4
Front
Are the costs or benefits that affect anyone other than the buyer or seller, they have consequences for someone else, a third party
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