An externality in a transaction is
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1 mark, −0.33MicroeconomicsMarket failure, externalities and public goodsExternalities and the social optimumEasyabout 1 min
UoH 2017 Question 54: 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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