One of the roles of a government is to limit the market power of monopolies or even to eliminate them entirely due to <u>market inefficiencies.</u>
<h3>What is market inefficiencies?</h3>
An inefficient market, which can happen for a number of reasons, is one where an asset's prices do not fairly reflect their true value, in accordance with economic theory.
Deadweight losses are often the result of inefficiencies. The majority of markets do, in fact, exhibit some degree of inefficiency, and in the worst situation an inefficient market might serve as an illustration of a market failure.
According to the efficient market hypothesis (EMH), in a market that functions effectively, asset prices always reflect the true worth of the asset. For instance, a stock's current market price ought to accurately reflect all information that is now publicly available about it.
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Answer:
True is the answer to your question.
This is an example of psychological conditioning. When a stimulus (a flash of light) is paired with a consequence (an electric shock), the subject has a particular behaviour (pulling the finger away). After enough repetition, the subject will learn to associate the two, and the stimulus will be enough to motivate the behaviour, even when no consequence is present.
After several trials without the consequence, the subject will again dissociate the stimulus from the behaviour, and will go back to his pre-study pattern, in a process called extinction.
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