In Perfectly Competitive Markets There Are No Externalities

question 12

True/False

In perfectly competitive markets there are no externalities. That is, actions of decision-makers on each other's wellbeing do not extend beyond those effects transmitted by prices.

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Definitions:

Energy

The capacity to do work, manifested in physical (like mechanical, thermal) or chemical forms and convertible from one form to another.

Optimism

A general tendency to expect good outcomes.

Schizophrenia

A serious mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Irrational Thought

A type of thinking that is not based on reason or clear thinking, often leading to unrealistic expectations and negative outcomes.