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  • 10-04-2021
  • Social Studies
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Explain how government interference in a market can lead to inefficiency.

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jecontreras103
jecontreras103 jecontreras103
  • 10-04-2021

Answer:

Governments intervene in markets to address inefficiency. In an optimally efficient market, resources are perfectly allocated to those that need them in the amounts they need. ... Inefficiency can take many different forms. The government tries to combat these inequities through regulation, taxation, and subsidies.

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