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These entities choose and express, trough economic exchanges, their preferences concerning the possibilities of rare resources' exploitation.
The market system is considered when a set of competitive markets generates an efficient allocation of resources between and within economies.
However, it is commonly known that market has some limits that we can call "market failures".
Market failure is a situation in which markets do not efficiently organize production or allocate goods and services to consumers. To economists, the term would normally be applied to situations where the inefficiency is particularly dramatic, or when it is suggested that non-market institutions (such as public policing and fire fighting) would be more efficient and wealth-producing than their private alternatives...
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