For government to correct for the failure of market outcome, it must do all of the following except:
A) recognize the problem.
B) act only if the marginal costs exceed the marginal benefits.
C) have the will to do something positive about the problem.
D) have the ability to do something positive about the problem.

Question

Quizplus · Accepted Answer

To correct a market failure, the government should act only if the marginal benefits exceed the marginal costs, not the other way around.

For Government to Correct for the Failure of Market Outcome