If a Market Is Not Perfectly Competitive,then Government Intervention

question 31

Multiple Choice

If a market is not perfectly competitive,then government intervention

• A) is always justifiable.
• B) will usually decrease economic well-being.
• C) guarantees that societal well-being will be maximized.
• D) may increase economic well-being.

---

Definitions:

Accounting Profits

The difference between total revenue and explicit costs, reflecting the net income reported on financial statements.

Economic Profits

Profits exceeding the opportunity costs of all inputs into a business, considered a measure of efficiency and economic performance beyond just accounting profit.

Farmer's Market

A public and recurring assembly of farmers or their representatives selling the food and products they produce directly to consumers.

Implicit Costs

The opportunity costs of using resources that a company already owns, not directly paid for with cash.