When Markets Fail, Which of the Following Is True

question 176

Multiple Choice

When markets fail, which of the following is true?

• A)Government intervention can always improve outcomes.
• B)Government intervention can potentially improve outcomes.
• C)Government intervention can never improve outcomes.
• D)Markets do not fail.

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Definitions:

Competitive Firm

A business that operates in a market where it must compete with other firms for the same customers or resources.

Profit Maximizing

A strategy or process aimed at achieving the highest possible profit from business operations.

Technology Improvement

Enhancements or advancements in technology that lead to more efficient processes or better quality outcomes.

MC

Stands for Marginal Cost, which is the cost incurred by producing one additional unit of a good or service.