The Positive Contribution of Politics in the Determination of Economic

question 107

True/False

The positive contribution of politics in the determination of economic policy is that it takes market failures and failures of market outcome into account in formulating policy.

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Definitions:

Natural Monopoly

A market condition where a single firm can supply a product or service at a lower cost than two or more firms, due to economies of scale.

Economies of Scale

The cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale.

Persistent

Continuously existing or enduring over a prolonged period.

Price Discrimination

A strategy in pricing where the same provider sells identical or nearly identical products or services for various prices across different markets or to distinct customer groups.