Among the obstacles to the efficient allocation of resources are all of the following EXCEPT ........

Among the obstacles to the efficient allocation of resources are all of the following EXCEPT

competition.

monopoly.

external benefits.

external costs.

- Competition: It drives efficiency by encouraging firms to innovate and cut costs. It leads to a better allocation of resources.

- Competition is not an obstacle to efficient allocation.

- Monopoly: Dominant firms can set prices above market levels. This can lead to inefficient allocation and less consumer choice.

- External Benefits: Positive spillovers that are often underproduced in a free market because firms do not capture all benefits.

- External Costs: Negative spillovers like pollution that are often overproduced since the cost is not borne by producers.

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