Explain how government intervention can improve economic efficiency in public good market
Please provide the best answer for the statement.
When a product is a public good the private market under produces and is inefficient. The government can collect an involuntary tax from those who benefit from the public good, but do not directly pay for it, to subsidize the good. This moves the economy toward a more efficient outcome.
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In the figure above, firms
A) pay taxes directly to governments. B) sell goods and services to governments in goods markets. C) receive transfers from governments through factor markets. D) own factors of production. E) do all of the above.
The bargaining power of suppliers increases if
A) the input supplied is relatively standardized. B) the input in question is not a critical component of production. C) the cost of switching suppliers is relatively low. D) there are only a few competitors to the supplier.
A _____ puts the assets of two corporations under a common management
a. acquisition b. vertical integration c. merger d. proxy fight
The statement "As more of a good is consumed, the utility a person derives from each additional unit diminishes" is known as the
a. water and diamond paradox b. law of diminishing marginal utility c. law of total utility d. marginal-utility-to-price ratio equalization rule e. law of diminishing demand