Government regulation can improve economic efficiency if _____.
a. regulators encourage uncompetitive markets to act competitively
b. regulators have private information firms do not have
c. regulators are able to coordinate inter-industry actions to achieve efficiencies
d. regulators base their actions on the revealed preferences of market participants
Question 2
Technological efficiency is
A) a necessary and sufficient condition for profit maximization.
B) a sufficient but not necessary condition for profit maximization.
C) a necessary but not sufficient condition for profit maximization.
D) a theoretical construct with little connection to the real world.
