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Private demands and supplies to assign goods

Reliance on private demands and supplies to assign goods and resources is least certain to outcome an economically ineffective solution just because: (i) Producers encompass monopoly power. (ii) A good is non-rival and non-exclusive. (iii) Consumption of these health services as flu shots decreases the probability which a contagious disease will be spread. (iv) Production produces such negative externalities as the pollution. (v) Most people think that the distribution of income is unfair.

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