Micro5SG - more costs than benefits. #2 - List the factors...

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ECO 2023 Principles of Microeconomics Chapter 5 The Economic Role of Government Key Terms: Economic efficiency External costs External benefits Public goods Free rider 2 Goals: #1 - Explore the details of efficiency. The two necessary conditions for efficiency: (1) an action is efficient if it produces more benefits than costs (2) an action is inefficient if it produces
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Unformatted text preview: more costs than benefits. #2 - List the factors that can reduce the efficiency of markets. Lack of competition, externalities, public goods, and information problems are the biggest obstacles for the market to overcome to achieve an efficient outcome....
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