Suppose that antitrust laws were successful in moving the allocation of resources in the computer software industry closer to the social optimum. This situation would illustrate which of the following Ten Principles of Economics?

a. Trade can make everyone better off.

b. The cost of something is what you give up to get it.

c. Governments can sometimes improve market outcomes.

d. A country's standard of living depends on its ability to produce goods and services.

Question

Business

Farley

28 October, 11:04

Suppose that antitrust laws were successful in moving the allocation of resources in the computer software industry closer to the social optimum. This situation would illustrate which of the following Ten Principles of Economics?

a. Trade can make everyone better off.

b. The cost of something is what you give up to get it.

c. Governments can sometimes improve market outcomes.

d. A country's standard of living depends on its ability to produce goods and services.

+4

Answers (2)

Know the Answer?

Spencer Schmitt · Answer 1

Answer: Governments can sometimes improve market outcomes.

Explanation:

Government's involvement in the market is usually to improve market outcomes because if the invisible hand is left on its own may, it may fail to allocate the resources in the economy efficiently.

The government may therefore intervene to promote equity and efficiency. The market on its own can cause market failure through market power and externalities.

Sabrina Lin · Answer 2

c. Governments can sometimes improve market outcomes.

Explanation:

Supposing that antitrust laws were successful in moving the allocation of resources in the computer software industry closer to the social optimum.

In the Principles of Economics, this situation would illustrate that governments can sometimes improve market outcomes which suggests that they can aim to maximize the well-being of the country and the worst-off person in society who is probably suffering.