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In a competitive market ______ will not always reflect all spillover benefits

In a competitive market demand will not always reflect all spillover benefits

How do spillover costs arise?

Spillover costs arise when firms "use" resources without being compelled to pay for their full costs.

How would resources be allocated in a competitive market?

resources will be misallocated if government does not properly adjust demand and supply for large spillover costs and benefits.

What does spillover benefits refer to

benefits that accrue to parties other than the producer and buyer of a good

A pure market economy over allocates resources to the production of goods that involve

Spillover costs

A spillover cost or spillover benefit is also known as

It is also known as externality

what does spillovers or externalities relate to

They relate to to both costs and benefits