A firm lacks market power if it cannot influence __________

Each member in a group might do what's best for himself or herself instead of behaving in a way that optimizes the well-being of the entire group. This gives rise to the problem of:

A) Pareto inefficiency. B) free riding. C) irrational behavior. D) disequilibrium.

Prudential regulation ________

A) requires that banks maintain the confidentiality of loan applications B) is administered by a specific insurance company C) is necessitated by the government's safety net for the banking system D) is an effective substitute for prudential supervision