Explain Why, in the Case of Negative Externalities, a Competitive

question 182

Essay

Explain why, in the case of negative externalities, a competitive market produces a greater-than-economically-efficient quantity.

---

Definitions:

Conditioned Response

A learned response to a specific stimulus as a result of conditioning.

Trace Conditioning

A form of conditioning in which the conditioned stimulus (CS) and unconditioned stimulus (UCS) are presented separately with a time gap in between, requiring the organism to maintain a memory of the CS to elicit a response.

Delayed Conditioning

A classical conditioning paradigm where the conditioned stimulus is presented and continues until the unconditioned stimulus begins, resulting in learning the association between the two stimuli over time.

Backward Conditioning

A conditioning method where the conditioned stimulus is presented after the unconditioned stimulus, often leading to weaker learning.