Which of the following does NOT justify government intervention in a market?
A) Free markets can create inequality across consumers
B) The market price fails to reflect the benefits to consumers and the costs to producers
C) The market it price is just high enough to cover the cost of producing one more unit of the good
D) The production of some goods generates pollution

Question

Quizplus · Accepted Answer

Option A, B, and D all provide valid justifications for government intervention in a market. Option C, on the other hand, suggests that the market is functioning efficiently and does not warrant government intervention. However, even if the market price is just high enough to cover the cost of producing one more unit of a good, there may still be externalities or market failures that justify government intervention.

Which of the Following Does NOT Justify Government Intervention in a Market