Which of the following is a reason why market fails?

CA Foundation · Business Economics · MTP · September 2026
Which of the following is a reason why market fails?
(A) A. perfect competition among firms
(B) B. absence of externalities
(C) C. adequate provision of public good
(D) D. information asymmetry

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. information asymmetry

Topics: Public Finance

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