When Negative Externalities Exist, Perfectly Competitive Markets Produce Less Than

question 33

True/False

When negative externalities exist, perfectly competitive markets produce less than the efficient output.

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Definitions:

1960s

A decade marked by significant social, political, and cultural change, often associated with movements for civil rights, peace, and liberation.

Cause-Effect

The principle that an action or event (cause) results in a consequence or outcome (effect).