Which of the Following Does NOT Justify Government Intervention in a Market

question 65

Multiple Choice

Which of the following does NOT justify government intervention in a market?

• A) Free markets can create inequality across consumers
• B) The market price fails to reflect the benefits to consumers and the costs to producers
• C) The market it price is just high enough to cover the cost of producing one more unit of the good
• D) The production of some goods generates pollution

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Definitions:

Average Variable Cost

The total variable cost divided by the quantity of output produced, showing how variable costs change with output levels.

Cost Curves

Graphical representations of the costs associated with producing different quantities of goods, showing how costs change with changes in output.

Economic Cost

Cost to a firm of utilizing economic resources in production.

Sales Consulting

Professional services aimed at improving a company's sales processes, strategies, and performance.