When markets don't achieve efficiency:
A)they must achieve equity.
B)government must be participating in the market.
C)government may intervene to improve society's welfare.
D)they should be closed.

Question

Quizplus · Accepted Answer

When markets don't achieve efficiency, the government may intervene to improve society's welfare through policies such as regulations, taxes, and subsidies. The goal is not necessarily to achieve equity but rather to correct market failure and ensure that resources are allocated efficiently. Closing the market is not a feasible or desirable option, and government participation in the market is not always necessary or desirable either. Therefore, the best choice is C.

When Markets Don't Achieve Efficiency