Public Policies

question 73

Multiple Choice

Public policies

• A)may be able to improve either economic efficiency or equality.
• B)may be able to improve economic efficiency but cannot improve equality.
• C)may be able to improve equality but cannot improve economic efficiency.
• D)cannot improve either equality or economic efficiency.

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Definitions:

Dominant Strategy

A strategy that yields the best outcome for a player, regardless of what strategies other players choose.

Duopoly

A market structure characterized by two dominant firms controlling the majority of the market share.

Natural Monopoly

A market structure where a single supplier is most efficient due to high fixed or start-up costs, often in industries like utilities.

Economies of Scale

The financial benefits businesses receive from their operational scale, where the cost for each unit produced tends to decrease as the scale of production increases since fixed costs are allocated over a greater quantity of output.