How Does a Negative Externality in Production Reduce Economic Efficiency

question 85

Essay

How does a negative externality in production reduce economic efficiency?

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Definitions:

Recessive

A term used in genetics to describe a trait or gene that is only expressed when two copies of it are present, one from each parent, as it is masked by the presence of a dominant trait when only one copy is present.

Cell Differentiation

The process by which a cell becomes specialized in order to perform a specific function within the body.

Specialize

To focus on a particular area of study or profession, gaining extensive knowledge or skill in that area.

Teratogen

An agent or condition, including viruses, drugs, and chemicals, that can impair prenatal development and result in birth defects or even death.