a. When the forces of supply and demand lead to an inefficient outcomeit is a signal that the government needs to take ownership of that market including all the resources involved.economists call this a deadweight loss.economists call this a market failure.the economic surplus is maximized.». Classify each scenario as to whether it is likely to result in an efficient or inefficient market outcome.Efficienta market transaction in which one party has information not available to the other partya market in which government regulation creates distortionsAnswer Banka market dominated by a few powerful businessesInefficienta market transaction in which buyers or sellers behave irrationallya market in which economic surplus is maximized

a. When the forces of supply and demand lead to an inefficient outcome.b. Classify each scenario as…

a. When the forces of supply and demand lead to an inefficient outcome O it is a signal that the government needs to take ownership of that market including all the resources involved. economists call this a deadweight loss. economists call this a market failure. the economic surplus is maximized. Classify each scenario as to whether it is likely to result in an efficient or inefficient market outcome.

a. When the forces of supply and demand lead to an inefficient outcome O it is a signal that the government needs to take ownership of that market including all the resources involved. economists call this a deadweight loss. economists call this a market failure. the economic surplus is maximized. Classify each scenario as to whether it is likely to result in an efficient or inefficient market outcome.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 14RQ: What is an externality?

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