Why do economists generally prefer market based policies tocommand and...

Why do economists generally prefer â€œmarket-basedâ€ policies to â€œcommand-and-controlâ€ (regulatory) policies to deal with â€œmarket failuresâ€?

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Economics

Why do economists generally prefer â€œmarket-basedâ€ policies toâ€œcommand-and-controlâ€ (regulatory) policies to deal with â€œmarketfailuresâ€?

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Economists prefer marketbased policies like taxes subsidiesetc because it helps the firms to internalize the external costs and benefits in the case when market failure arises due to See Answer

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Why do economists generally prefer â€œmarket-basedâ€ policies to â€œcommand-and-controlâ€ (regulatory) policies to deal with â€œmarket failuresâ€?