The existence of which of the following prevents the achievement of economic efficiency?
Externalities create a difference between private and social costs or benefits. Decisions based only on private incentives can consequently produce an inefficient allocation…
Choose your answer
The existence of which of the following prevents the achievement of economic efficiency?
Answer and explanation
Correct answer D
Externalities create a difference between private and social costs or benefits. Decisions based only on private incentives can consequently produce an inefficient allocation of resources.
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Telangana SET (TG SET)