Obstacles in achieving efficiency in a market include
A) public goods.
B) the presence of an external cost or benefit.
C) competition.
D) Both answers A and C are correct.
E) Both answers A and B are correct.

Question

Quizplus · Accepted Answer

Public goods and external costs or benefits create market failures which hinder efficiency, while competition can increase efficiency. Therefore, only answers A and B are correct.

Obstacles in Achieving Efficiency in a Market Include