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

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Essay

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


Definitions:

Capillary Tube

A thin tube used in medical and scientific applications to hold and transfer small amounts of fluid.

Hematocrit

The ratio of the volume of red blood cells to the total volume of blood.

Megakaryocyte

A large bone marrow cell responsible for the production of blood thrombocytes (platelets), which are critical in blood clotting.

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