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In Terms of Cost-Benefit Analysis,explain Why a Competitive Market with an Externality

question 25

Essay

In terms of cost-benefit analysis,explain why a competitive market with an externality produces too much pollution.


Definitions:

Percentage

A portion or share expressed as a fraction of 100.

Net Amount

The final amount remaining after all deductions, like taxes and fees, have been subtracted from the gross amount.

Collect Like Terms

A mathematical process to simplify algebraic expressions by combining constants and variables that are the same.

Operation Indicated

A term referring to the specific process or calculation suggested by the context, often mathematical or procedural.

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