6. Which of the following statements is true of markets?

A. Government intervention in markets should always be avoided.
B. There are no disadvantages of having free markets.
C. Markets discourage competition among firms.
D. Free markets sometimes fail to produce the best results for society, but such failure can be reduced by government intervention.



Answer :

Final answer:

Markets can have failures, leading to the need for government intervention to address issues such as monopoly and pollution.


Explanation:

Markets can sometimes produce unwanted results such as monopoly and pollution. Governments may intervene in cases like these to address market failures. It is essential to understand the strengths and weaknesses of both markets and government intervention in making informed economic policy decisions.


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