Which one of the following statements regarding externality is TRUE?
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1 mark, −0.333MicroeconomicsMarket failure, externalities and public goodsExternalities and the social optimumModerateabout 2 min
GATE 2026 Question 32: 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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