Which of the following is a Pareto improvement?
A) A monopolist loses its monopoly when a government policy allows another firm to enter the market, resulting in lower prices and higher quantity available for consumers.
B) A government policy is implemented that results in the middle class being better off, and the very rich only have to pay a little bit more in taxes.
C) A government policy removes a market failure.
D) None of the above.
D
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Under perfect competition, firms are relatively ignorant of the actions of their competitors
a. True b. False Indicate whether the statement is true or false
In a –-based economy, transactions require that each party have something the other desires. – increases market – by serving as a common commodity everyone wants. Now a transaction requires only that the – have something the – desires and that the buyer have enough money to pay the seller’s asking price.
Fill in the blank(s) with the appropriate word(s)