Competitive markets generally give consumers and producers correct incentives when
A) externalities are present in the market.
B) property rights are well-defined and enforced.
C) the good being produced and consumed is a pure public good.
D) there is a substantial lack of information on the part of either buyers or sellers.

Question

Quizplus · Accepted Answer

Well-defined and enforced property rights ensure that resources are allocated efficiently, allowing competitive markets to function properly and provide correct incentives to consumers and producers.

Competitive Markets Generally Give Consumers and Producers Correct Incentives When