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However, the implementation of such a pricing mechanism raises questions about efficacy and fairness. Critics argue that excessive regulation can stifle market innovation and lead to shortages. When producers are unable to charge a price that accurately reflects their costs or the value of their product, they may reduce production or divest from the market entirely. This is particularly concerning in industries where high research and development costs are involved, such as technology or pharmaceuticals.
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6. Finish the Surrounding Area