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The price system does have limitations, however. It does not accuratley assign the costs of externalities like pollution. Nor does it accuratley distibute the costs and benefits of public goods like national defense. In addition, the system's occasional instability can make it difficult for producers and consumers to predict prices and plan for the future.

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Maryangela Abreu Pen...

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Q: What Limitations of the price system?
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