What are the major rationales for consumer protection in nonmonopolistic industries?
What will be an ideal response?
The main rationales for consumer protection in nonmonopolistic industries are: (1 ) the presence of market failures, which induce governments to correct the externalities; and (2 ) the presence of asymmetric information for certain products so that the government can ensure consumers are protected.
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Faced with an uncertain situation, the best decision for a person obeying the von-Neumann Morgenstern axioms: a. minimizes loss relative to the status quo
b. minimizes variability across possible outcomes. c. maximizes the expected payoff. d. maximizes expected utility.
The investment expenditures made by Macroville's power plant to reduce air polluting emissions result in a decrease in the national economy's net output for the year
Indicate whether the statement is true or false