Government failure occurs when
a. intervention by the government in the market fails to provide the socially optimal quantity of goods produced
b. the government fails to intervene in a market that has sizable externalities
c. the government fails to protect the free market and is forced to nationalize
d. the government must intervene in a market to provide the socially optimal quantity of goods
e. the government imposes a tax when it should have used an obligatory control
A
You might also like to view...
The accountant for Muzhi's Sushi claims that Muzhi has accomplished "economic efficiency." This means that Muzhi's Sushi
A) produces a given output using the least inputs. B) produces a given output at the lowest cost. C) has an economic profit greater than a normal profit. D) has a normal profit greater than an economic profit.
Regardless of market structure, all firms
A) consider the actions of rivals. B) maximize profit by setting marginal revenue equal to marginal cost. C) produce a differentiated product. D) have the ability to set price.