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In the Case of an External Benefit Generated by an Activity

question 385

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In the case of an external benefit generated by an activity, such as education, a private subsidy for that activity can achieve an efficient outcome.

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Definitions:

Limiting Resource

A resource in short supply that restricts the growth, abundance, or distribution of an organism or a population.

Competition

A biological interaction where organisms vie for the same resources, such as food, space, or mates, in an ecosystem, influencing the structure and diversity of communities.

Ecological Niche

The role and position a species has in its environment, including all of its interactions with the biotic and abiotic factors.

Trophic Level

The position an organism occupies in a food chain, defined by the number of steps it is from the primary source of energy.

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