The market can deal with an externality over time if

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When private property rights are clearly defined, individuals have a stronger incentive to consider the external costs and benefits of their actions. This can lead to negotiations and agreements between parties that internalize the externality and result in a socially optimal outcome without government intervention or public interest groups. However, this process may take time to develop and may not always be successful in correcting externalities.

The Market Can Deal with an Externality Over Time If