The two most important rationales for government intervention in non-monopolistic markets are

Question

Quizplus · Accepted Answer

Market failure occurs when the market fails to allocate resources efficiently, resulting in an inefficient allocation of goods and services. Asymmetric information occurs when one party in a transaction has access to more information than the other, resulting in an unfair advantage. Government intervention can help correct these market failures and promote an efficient allocation of resources. The other options listed do not accurately reflect the primary rationales for government intervention in non-monopolistic markets.

The Two Most Important Rationales for Government Intervention in Non-Monopolistic