Author Question: Economic freedom requires A) that there are no regulations and restrictions set on businesses and ... (Read 55 times)

mikaylakyoung · **on:** Jun 29, 2018

Economic freedom requires

A) that there are no regulations and restrictions set on businesses and households by the government.
B) the rule of law and the ability to enforce the laws.
C) strong labor unions.
D) freedom to bribe government officials.
E) that the government be a democracy.

Question 2

What is the best outcome for society: When firms in an oligopoly operate as a monopoly or when they act as perfect competitors? Briefly explain your answer.

What will be an ideal response?

bpool94 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

B

Answer to Question 2

The best outcome for society is when the firms act as perfect competitors. Perfect competition produces the efficient quantity of output. A monopoly restricts the quantity of output it produces and creates a deadweight loss, which harms society So society is better off if the firms compete rather than collude and operate as a monopoly.