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A:
That's completely wrong. In the classical case, the potential energy lost as things clump gravitationally is converted largely to thermal energy, increasing entropy. That's just like any other energy conversion process. In more extreme General Relativistic cases, the clumping can produce a black hole. The black hole entropy is larger than that of whatever ingredients went into it, again obeying the Second Law. If the black hole then evaporates via Hawking radiation, the radiation has larger entropy than the black hole, again obeying the Second Law.
Mike W.
(published on 10/18/2011)
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