Which of the Following Suggests That Private Markets Can Be

question 448

Multiple Choice

Which of the following suggests that private markets can be effective in dealing with externalities?

• A)the "invisible hand"
• B)the law of diminishing social returns
• C)the Coase theorem
• D)technology policy

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Definitions:

Oligopolists

Firms that dominate an industry, characterized by a small number of entities controlling a large market share.

Price War

A competitive situation where rival companies repeatedly cut prices to undercut each other, often to gain market share.

Oligopoly

A market setup where a few companies dominate by holding a significant market share.

Monopoly Level

A state or degree in which a single company or entity has exclusive control over a particular market or industry.