Competitive firms consider private costs, but disregard external costs, when making their economic decisions.

Name: Competitive firms consider private costs, but disregard external costs, when making their economic decisions.
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Question

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Competitive firms only consider the costs directly incurred by their own production process, such as labor and material costs. They do not factor in external costs, such as pollution or damage to public goods, which are borne by society as a whole.

Competitive Firms Consider Private Costs, but Disregard External Costs, When