In a competitive market, a free market approach is always best when no externalities are present.

Question

Quizplus · Accepted Answer

In a competitive market, a free market approach where prices are determined by supply and demand without external intervention is generally considered the best approach, as it allows for efficient allocation of resources and fosters innovation and competition among businesses. However, if externalities such as pollution or public goods are present, government intervention may be necessary to address these market failures.

In a Competitive Market, a Free Market Approach Is Always