When Economists Talk About "Optimal Outcomes" in the Marketplace,they Mean

question 94

Multiple Choice

When economists talk about "optimal outcomes" in the marketplace,they mean that

• A)The allocation of resources by the market is perfect.
• B)All the consumer desires are satisfied and business profits are maximized.
• C)The allocation of resources by the market is likely to be the best possible,given scarce resources and income constraints.
• D)Everyone who wants a good or service can have it.

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Definitions:

Sherman Act

A landmark U.S. antitrust law passed in 1890 that prohibits monopolistic business practices and encourages competition.

Monopoly

A market condition where a single company or entity exclusively controls a particular commodity or service, often leading to less competition and higher prices.

Public Regulation

The imposition of rules by the government aimed at influencing or controlling certain activities within the economy or society for the general welfare.

Natural Monopolists

Natural monopolists are entities that can provide a good or service at a lower cost than any potential competitor due to economies of scale, making a single provider more efficient than multiple competing ones.