Which of the followings are correct?
(A) The market is a system that works with price mechanism
(B) Market failure refers to the divergence of market equilibrium from pareto optimality
(C) Market fails to efficiently supply public goods and the same makes a case for govt intervention
(D) Market efficiently works in the presence of positive externalities
(E) Market efficiently works in the presence of negative externalities
Choose the correct answer from the options given below:
1
(A), (B), (C), and (D)
2
(A), (B) and (C) only
3
(C), (D) and (E) only
4
(B) and (E) only