When there is imperfect competition,the role of the government is to
A) take over production.
B) tell the firms how much to produce.
C) foster competition.
D) all of the above

Question

Quizplus · Accepted Answer

When there is imperfect competition, the government's role is to foster competition. This can be done through policies such as antitrust laws, promoting market entry, encouraging innovation, and providing information to consumers. Taking over production or telling firms how much to produce would not be effective solutions to promoting competition in the market.

When There Is Imperfect Competition,the Role of the Government Is