Which of the following is NOT a type of market failure?
A. Public goods
B. Externalities
C. Perfect competition
D. Asymmetric information
Answer: Option C
Solution (By JKSSB Mock Tests)
Market failure occurs when free markets fail to allocate resources efficiently. Causes include externalities, public goods, asymmetric information and monopoly power. Perfect competition is an ideal, not a failure.
Explanation:
In cost-benefit analysis, a project is viable when the discounted present value of its benefits exceeds the discounted present value of its costs (positive net present value).
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