Ask Question
8 March, 13:31

If no externalities exist in a particular industry, what happens to the market equilibrium?

+5
Answers (1)
  1. 8 March, 17:20
    0
    Market equilibrium does reaches Pareto optimality.

    Explanation:

    If there are no externalities, then we don't have market failure or competitive market equilibrium reaches Pareto optimum. This is a situation, where it is not possible to make things better for someone without making it worse for someone else.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If no externalities exist in a particular industry, what happens to the market equilibrium? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers