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Production and consumption of good of private decisionmakers

Production and consumption of a good is most probable to be economically inefficient in a private market system while private decisionmakers: (i) are affected by government policymakers. (ii) avoid how the activity generates benefits on non-decisionmakers or imposes costs on them. (iii) fear that their choices will attract the attention of government regulators. (iv) fail to consider the consequences of the activity on the distribution of income. (v) avoid the policy preferences of government legislators.

Please help me to solve the problem of economic that is given above.

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