1. For markets to operate efficiently, the people making consumption and production decisions must bear the full __________ and reap the full __________ from their decisions. 2. Pollution from a paper...

1. For markets to operate efficiently, the people making consumption and production decisions must bear the full __________ and reap the full __________ from their decisions.

2. Pollution from a paper mill is an example of market failure because people living downwind of the mill bear part of __________ of production.

3. Some markets are dominated by a few large firms, leading to high __________ and small __________. 4. __________ occurs when markets do not produce the most efficient outcome.