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30 May, 03:09

In a free market system, what can result if profit incentives do not work properly in the face of spillover costs?

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  1. 30 May, 04:20
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    The equilibrium will be destroyed by this event. When there is a high demand and lack of supply, shortage will occur. When there is a low demand and high supply, there will be a surplus. There must be an equilibrium in order for the profit incentives to be worth the change.
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