Explain Why an External Cost Leads to an Over-Allocation of Resources

question 321

Essay

Explain why an external cost leads to an over-allocation of resources to the production of a good.

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Definitions:

Phonemes

The smallest units of sound in a language that distinguish one word from another, playing a crucial role in the structure and meaning of words.

Newborns

Infants in their first moments to weeks of life, characterized by rapid developmental changes physically and neurologically.

Native Language

is the first language a person learns in childhood and becomes most fluent in, often used as the primary means of communication in their community.

Phoneme

The smallest unit of sound in a language that can distinguish one word from another, for example, the difference between the "k" sound in "kit" and the "s" sound in "sit."