Question

A market in which there are neither spillover benefits nor spillover costs is:

a) Perfectly Competitive Market
b) Free Market
c) External Cost Market
d) Marginal Cost Market

Answer 1

In a perfectly competitive market, there are neither spillover benefits nor spillover costs.

Step-by-step explanation:

In this case, the correct answer would be a) Perfectly Competitive Market. A perfectly competitive market is a market structure where there are many buyers and sellers, and no single participant can influence the price or quantity of goods traded. In such a market, there are neither spillover benefits nor spillover costs, meaning that the benefits and costs of production are internalized by the buyers and sellers.