All of the following,except one,are benefits of perfectly competitive markets.Which is the exception?
A)Competitive markets promote personal economic freedom.
B)Competitive markets eliminate externalities.
C)Ignoring externalities,competitive markets are productively efficient.
D)Competitive markets are costless to implement.
E)Ignoring externalities,competitive markets are allocatively efficient.

Question

Quizplus · Accepted Answer

Competitive markets do not inherently eliminate externalities. Externalities, both positive and negative, can still exist in competitive markets because they are costs or benefits that affect a party who did not choose to incur that cost or benefit.

All of the Following,except One,are Benefits of Perfectly Competitive Markets