Which of the following market structures provides socially efficient outcomes?

If everyone benefits from helping the poor,

a. government intervention cannot improve social well-being. b. eliminating taxes aimed at redistributing income will make rich people better off. c. taxing the wealthy to raise living standards of the poor can potentially make everyone better off. d. private markets can adequately provide charity programs to help the poor, despite free-rider problems.

Explain why being a residual claimant can increase the risk from owning stocks.

What will be an ideal response?