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A market that is efficient in allocating scarce resources to their best use, which of the following markets is likely to be the most efficient without any government intervention? a, electricity in virginia.
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B, retail market for gasoline.
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C.
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University education.
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D.
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Internet service.
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The correct answer here is c.
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A university education is likely to be the most efficient without any government intervention.
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A market works on self -correcting mechanisms and adjusts.
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Prices and quantity according to demand and supply of the goods.
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But there are certain markets that need government intervention due to consumer exploitation.
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There are some goods which are limited and are necessary for consumers like gasoline, internet services, and electricity, and their market can be monopoly in nature.
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Oftentimes these are natural monopolies due to the cost of entry into that market being so high that it prevents others from entering.
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Because they're natural monopolies, we don't want them to get out of hand and be like price gouging and running up the price so high that people can't afford to pay it and have no alternatives...