In a market economy, the government's ability to coerce is beneficial in the following cases, except in

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In a market economy, fixing resource prices by the government can distort the natural supply and demand forces of the market and can potentially lead to inefficient resource allocations. Therefore, the government's ability to coerce is not beneficial in fixing resource prices. However, correcting for positive and negative externalities as well as producing public goods are cases where government intervention is necessary to ensure economic efficiency and societal welfare.

In a Market Economy, the Government's Ability to Coerce Is