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Efficiency is not the only thing that matters though. As drcongo pointed out Coke is very efficiently depleting the normal aquifers that native farmers rely on

Efficiency is not the only thing that matters though. As drcongo pointed out Coke is very efficiently depleting the normal aquifers that native farmers rely on in their quest to build a market for their product. Now if we consider that Coke is a luxury when compared to a necessity like water for drinking and irrigation, we should conclude that a luxury that precludes a necessity is superfluous and should be prohibited. That includes prohibiting "efficient businesses" when their actions to earn profits negatively impact the basic level of life.

s_q_b 13y ago
If Coca Cola is depleting a shared resource, then there is an unpriced negative externality. The solution is for the government to transfer some of the gains from the new more efficient system to those worse off under the new equilibrium. This can be accomplished by taxing the corporation for its use of the aquifers, and transferring the payments directly to those that lost use of their wells. The end result is that everyone ends up with more wealth than they had under the old system.