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

Answer :

Today at 5:15 PM

Answer:

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.

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