Which of the following is an example of market failure?

CA Foundation · Business Economics · MTP · January 2025
Which of the following is an example of market failure?
(A) A. Perfect competition in the economy
(B) B. Non-exclusion in public goods
(C) C. All firms making profits in a perfectly competitive market
(D) D. Optimal allocation of resources by private individuals

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Non-exclusion in public goods

Topics: Public Finance

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