Which of the following is not a typical source of market failure?

CA Foundation · Business Economics · MTP · September 2026
Which of the following is not a typical source of market failure?
(A) A. Imperfect information
(B) B. Perfect competition
(C) C. Market power
(D) D. Externalities

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Perfect competition

Topics: Public Finance

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