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

Quizplus · Accepted Answer

This situation would illustrate the principle that governments can sometimes improve market outcomes by enforcing antitrust laws to prevent monopolies and promote competition. This would lead to a more efficient allocation of resources, closer to the social optimum.

Suppose That Antitrust Laws Were Successful in Moving the Allocation