Externalities or public goods in purely competitive economy

A purely competitive economy along with no externalities or public goods tends to be efficient since: (1) firms try to act socially responsible. (2) government planners specify the best allocation. (3) all prices approximate marginal social benefits and costs. (4) firms consciously coordinate production decisions.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : State the relationship between MPC and

    State the relationship between MPC and multiplier? Answer: The value of multiplier differs directly with MPC.  K=1/1 - MPC.

  • Q : Optimal market solution of marginal

    From society’s point of view, an optimal market solution is attained while: (w) everyone’s income is equal. (x) all goods are given in the economy. (y) marginal social costs only equal marginal social benefits. (z) consumer surplus equals

  • Q : Capital markets efficiency What is

    What is capital markets efficiency?

  • Q : Current consumption over future

    When households’ start increasingly to prefer current consumption over future consumption, in that case the: (w) interest rate rises. (x) interest rate falls. (y) present value of future income rises. (z) equilibrium rate of investment within hu

  • Q : Requirement of production costs

    Decreasing average production costs needs raising the size of a firm when the raised production encounters economies of: (i) Growth. (ii) Coordination. (iii) Growth. (iv) Scale. (v) Scope. Find out the right answer from the above o

  • Q : Problem of Nash Equilibrium Carlos and

    Carlos and Ivana are room-mates and friends. Carlos and Ivana eat together despite who cooks on a given night. Within this payoff matrix, Nash equilibrium could never be obtained in that: (w) neither Carlos nor Ivana cook, nor do they eat. (x) Carlos

  • Q : Purely competitive buyers and sellers

    Purely competitive buyers and sellers are: (w) price-takers. (x) price-makers. (y) powerless to make decisions. (z) quantity-takers. Hello guys I want your advice. Please recommend some views for above Econ

  • Q : Wage Discrimination-Monopsonistic

    Whenever an organization’s wage structure reflects the keenness of individual staff to work, terms which are most applicable comprise: (i) Monopsonistic exploitation & wage discrimination. (ii) Monopolistic exploitation and the separation of possession and c

  • Q : Marginal cost Give the answer of

    Give the answer of following question. Refer to the given data. The marginal cost of producing the sixth unit of output is: A) $24. B) $12. C) $16. D) $8. 432_f</span></p>
                                        </div>
                                        <!-- /comment-box -->
                                    </li>
   
   </td>
	</tr><tr>
		<td>
       
      <li>
                                        <div class=

    Q : Arbitrage and Transaction Costs The

    The individual or organization which simultaneously purchases low and sells high in various markets is a/an: (i) Elevator. (ii) Speculator. (iii) Analyst. (iv) Arbitrageur. (v) Operator. Can someone please help me in finding out th

©TutorsGlobe All rights reserved 2022-2023.