Which of the following is an example of a positive externality?
A. Vaccination by an individual
B. Congestion on roads
C. Pollution from a factory
D. Noise from a construction site
Answer: Option A
Solution (By JKSSB Mock Tests)
A positive externality confers benefits on third parties. Vaccination protects not only the individual but also reduces the spread of disease to others.
Explanation:
In long-run equilibrium under perfect competition, free entry and exit ensure that price equals minimum long-run average cost and firms earn only normal profits.
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