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Rebecca Ramos
on Nov 17, 2024

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When externalities are present, reaching an efficient outcome is especially difficult when the number of interested parties is large.

Interested Parties

Refers to individuals or groups that have a stake or interest in the outcome of a project, decision, or outcome.

Efficient Outcome

A situation in which resources are allocated in the most effective way possible, often achieved through market equilibrium where supply equals demand.

  • Become familiar with the barriers faced by private negotiations in resolving externality concerns, notably in situations where transaction costs are present.
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Rombase, Maureen Kate G.Nov 17, 2024
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