A major reason why the market equilibrium for a manufactured good may not be efficient is O the industry is producing too little output. O there is likely to be a positive externality associated with production. the industry is likely to be a monopoly. O there is too much government regulation. property rights are not well defined.

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Chapter11: Monopoly And Antitrust Policy
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Problem 39P: If the transit system were regulated to provide the most allocatively efficient quantity of output,...
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Question 33
A major reason why the market equilibrium for a manufactured good may not be efficient is
the industry is producing too little output.
O there is likely to be a positive externality associated with production.
O the industry is likely to be a monopoly.
O there is too much government regulation.
O property rights are not well defined.
Transcribed Image Text:Question 33 A major reason why the market equilibrium for a manufactured good may not be efficient is the industry is producing too little output. O there is likely to be a positive externality associated with production. O the industry is likely to be a monopoly. O there is too much government regulation. O property rights are not well defined.
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