If the Production of a Good Causes Pollution (An External

question 420

Essay

If the production of a good causes pollution (an external cost) is the unregulated competitive market equilibrium of that product efficient?

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Definitions:

Material Breach

A significant failure to perform under a contract which permits the other party to either demand performance or terminate the agreement.

Frustration of Purpose

A doctrine in contract law that can discharge the parties' obligations when a change in circumstances makes the contract impossible to perform as originally intended.

Prevention of Performance

Prevention of performance is a situation where one party's actions make it impossible for the other party to fulfill their contractual obligations, potentially leading to legal consequences.

American History

The recorded events, actions, and developments that have occurred in the United States from its founding to the present day.