If a Production Process Creates Positive Externalities,a Competitive Market Produces

question 14

Multiple Choice

If a production process creates positive externalities,a competitive market produces too few positive externalities because the producer

• A) does not pay all the costs of the externalities.
• B) does not receive compensation for the externalities.
• C) Both A and B.
• D) None of the above.

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Definitions:

Osteoblast

Specialized cells responsible for bone formation, synthesizing and secreting the matrix materials necessary for bone development and growth.

Osteocyte

A mature bone cell enclosed in the bone matrix, responsible for maintaining bone tissue.

Osteoclast

A type of bone cell that breaks down bone tissue, playing a critical role in bone growth, healing, and remodeling.

Chondroclast

Chondroclasts are cells involved in the resorption of cartilage, playing a role in the development, maintenance, and repair of cartilaginous structures.