When the market quantity of a good is greater than the socially optimal quantity, it is a case of:

CA Foundation · Business Economics · MTP · May 2026
When the market quantity of a good is greater than the socially optimal quantity, it is a case of:
(A) A. Positive externality
(B) B. Negative externality
(C) C. Public goods
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Negative externality

Topics: Public Finance

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