Markets fail in the presence of (A) Market power (B) Positive Externalities (C) Negative Externalities (D) Competitive market (E) Asymmetric information Choose the correct answer from the options given below:
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4 marks, −1MicroeconomicsMarket failure, externalities and public goodsExternalities and the social optimumEasyabout 1 min
CUET-PG 2023 Shift 2 Question 26: Market failure, externalities and public goods
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Market failure, externalities and public goods has come up 114 times in 7 exams since 2006.
What this question tests
This question is on Externalities and the social optimum, part of Market failure, externalities and public goods in Microeconomics.
Costs or benefits that fall on others, and why the private and socially efficient outputs differ.
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Question from the CUET-PG 2023 Shift 2 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.