To maximize social benefits from markets, governments regulate markets using what two basic approaches?

Question

Quizplus · Accepted Answer

The two basic approaches for maximizing social benefits from markets are to encourage competition and minimize harm from market power. This means that governments should create conditions that promote competition, such as preventing monopolies and providing information to consumers, while also ensuring that powerful firms do not harm smaller competitors or consumers. This approach aims to balance the benefits of markets with the need to protect consumers and maintain a level playing field for businesses. The other choices are incorrect, as they either focus solely on one aspect of market regulation or encourage harmful practices such as reducing competition and encouraging market power.

To Maximize Social Benefits from Markets, Governments Regulate Markets Using