Which of the following can prevent markets from reaching the efficient level of production? I. a monopoly
II) taxes
III) the product is a public good
A) I and II
B) II
C) II and III
D) I, II and III

Question

Quizplus · Accepted Answer

Monopolies can restrict output to raise prices, taxes can distort market outcomes by increasing costs, and public goods can lead to market failure due to non-excludability and non-rivalry, all preventing efficient production levels.

Which of the Following Can Prevent Markets from Reaching the Efficient