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Once a Firm Is Forced to Consider an External Cost,the

question 21

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Once a firm is forced to consider an external cost,the price of its product will ________ and output will ________.


Definitions:

Incremental Models

Models or theories that suggest development or progress occurs in small, sequential steps.

Continuous Process

A process characterized by ongoing operations or functions without interruption.

Psychoanalytic Theory

A theory of personality development and its complex functioning in adulthood originated by Sigmund Freud.

Superego

In Freud’s personality theory, the last of three aspects of personality, which serves as an “internalized parent” that causes one to feel guilty if his behavior deviates from parental and societal restrictions.

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