Evaluate the following two statements: (i) General equilibrium does NOT guarantee efficiency if firms have market power. (ii) General equilibrium does NOT guarantee efficiency if producing output creates a negative externality O a. Neither (i) nor (ii) is true. O b. Both (i) and (ii) are true. O c. Only (i) is true. O d. Only (ii) is true.

Evaluate the following two statements: (i) General equilibrium does NOT guarantee efficiency if firms have market power. (ii) General equilibrium does NOT guarantee efficiency if producing output creates a negative externality O a. Neither (i) nor (ii) is true. O b. Both (i) and (ii) are true. O c. Only (i) is true. O d. Only (ii) is true.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 2PA

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