Governments may successfully intervene in competitive markets in order to achieve economic efficiency:

A) at no time; competitive markets are always efficient without government intervention.
B) to increase the incidence of positive externalities.
C) in cases of positive externalities only.
D) in cases of negative externalities only.
E) in cases of both positive and negative externalities.

Economic Efficiency

A situation where resources are allocated in the most effective way, maximizing total benefits while minimizing waste and costs.

Competitive Markets

Markets characterized by a large number of buyers and sellers, where no single entity can influence prices significantly.

Government Intervention

Actions taken by the government to influence or directly regulate economic activity, markets, or distribution of resources.