Explain Why, in the Case of Negative Externalities, a Competitive

question 182

Essay

Explain why, in the case of negative externalities, a competitive market produces a greater-than-economically-efficient quantity.

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Definitions:

EQ

Emotional intelligence, which refers to the ability to identify, assess, and control the emotions of oneself, of others, and of groups.

Extreme Stress

A very high level of strain or tension resulting from adverse or very demanding circumstances.

Judgment

The cognitive process of forming an opinion or conclusion based on information and reasoning.

Performance

The act of carrying out a task or the level of efficiency with which it is completed.