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This posting addresses market efficieny and the government.

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Can market efficiency evolve on its own without government intervention? Why or why not? What role do ethics play in market efficiency?

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Solution Summary

The solution provides discussion on market efficiency and government intervention, and discusses the role of ethics in market efficiency.

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Market efficiency cannot evolve on its own without government intervention. The problem is that without government intervention, signs of market failure begin to exist. This is caused by social and other factors that cause unfair competition, which causes an inequality in the market. Due to government intervention (including the governmental imposed regulations on the ...

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