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8. Suppose there is a doctor who has a practice next to a confectioner, and the doctor's ability to examine his/her patients is disrupted by
8. Suppose there is a doctor who has a practice next to a confectioner, and the doctor's ability to examine his/her patients is disrupted by the noise of machinery operated by the confectioner. Explain what the externality is here. Explain how the market itself, with clearly defined property rights could internalise the cost of the externalities in this example to reach an efficient allocation of resources
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