Some advocates of antipoverty programs claim that fighting poverty is a public good. Describe why government intervention may be necessary to reduce poverty
Eliminating poverty is not a good that the private market can provide. No single individual can solve the problem of poverty, and those who do not donate to charity can free-ride on the generosity of others. If we all prefer to live in a society without poverty, taxing the wealthy to raise the living standards of the poor may be able to make everyone better off.
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Suppose that at an output of 1,000 units, a monopolist has marginal cost of $40, marginal revenue of $30, average variable cost of $30, and average total cost of $50 . In order to maximize profit or minimize loss in the short run, the firm should
a. shut down b. continue to produce 1,000 units c. produce fewer than 1,000 units but still operate d. produce more than 1,000 units e. increase its plant size to gain economies of scale
Compared with a perfectly competitive market with similar cost conditions, a monopolist will have:
a. a higher output and a lower price. b. a lower output and a lower price. c. a higher output and a lower price. d. a lower output and a higher price. e. equal output and a higher price.