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Give the Definition of "Externality" and Indicate Why Externalities Can

question 13

Essay

Give the definition of "externality" and indicate why externalities can result in a failure to achieve equality between social marginal cost and social marginal benefit. Demonstrate your answer graphically with a negative externality.


Definitions:

Reevaluation

The process of reassessing or reexamining something, often leading to new insights, decisions, or changes in perspective.

Therapeutic Change

The process of transformation or improvement in a client's psychological, emotional, or behavioral state through psychotherapy.

Theoretical Orientations

The foundational beliefs and principles that guide psychologists and therapists in their understanding of clients and approach to treatment.

Psychopathology

The scientific study of mental disorders, including their symptoms, etiology (i.e., their causes), and treatment.

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