Suppose that a flower nursery benefits from having a butterfly farm located only a few it's important to note that sometimes private solutions to externalities do not work. for example, this occurs when an excessive amount of time or money must be spent for parties to reach an agreement. this describes the problem of .miles away, because the presence of the insects greatly improves flower pollination. lawyers for the two companies meet to draft a legal document specifying the number of butterflies the farm promises to maintain in exchange for payments to be made by the nursery.