The government often intervenes when private markets fail, Ask an Expert

Economics

The government often intervenes when private markets fail to provide an optimal level of certain goods and services. For example, the government imposes an excise tax on gasoline to account for the negative externality that drivers impose on one another. Why might the private market not reach the socially optimal level of traffic on the road without the help of government?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91519476

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