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20 December, 19:27

When the market fails to adjust for the full costs of a firm's behavior, this is called?

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  1. 20 December, 19:41
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    This is called externality. This occurs when the market fails to allocate resources and services effectively and adjust to the costs of the behavior of firms. The reason for this is that a firm is benefited or incurred with a cost that it did not intended to happen.
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