In an allocatively efficient market, you can access highly accurate information to guide production decisions. Access to relevant information allows you to make decisions that maximize the public benefit. In addition, when a company makes good financial decisions regarding prices, it may positively ...
In an economy, there should be some diversification. Different companies should produce different things and all production should be driven by consumer demand. Free markets are allocatively efficient because supply naturally depends on demand. A free market regulates itself. ...
Explain how the profit-maximizing rule of setting P=MC leads a perfectly competitive market to be allocatively efficient. Does a firm that sets its price greater than marginal cost apply to monopolistic competition, perfect competition, or both? Explain. ...
Explain how the profit-maximizing rule of setting P=MC leads a perfectly competitive market to be allocatively efficient. What are the best examples of perfect competition in a market? What can a small business owner operating under monopolis...
RegisterLog in Sign up with one click: Facebook Twitter Google Share on Facebook Category filter: AcronymDefinition RTLCReti Di Telecomunicazioni(Italian: Telecommunications Networks) RTLCRadio Thin Layer Chromatography RTLCReduced Total Lung Capacity ...
Explain how the profit-maximizing rule of setting P=MC leads a perfectly competitive market to be allocatively efficient. How is it that in the real world, monopolies often don't earn economic profit? What generally happens to profits for the typical firm in the long run in a pure monopoly...
In your example, why does the presence of negative externalities prevent a competitive market from reaching an allocatively efficient outcome? First, define and distinguish each concept below. Then provide two examples of each: Ecosystem structure Ecosystem f...
C) Why is perfect competition not found in real markets? Use a graph and words to explain why a monopolistically competitive market is neither allocatively efficient nor productively efficient. a. Discuss the characteristics of a purely competitive market. b. Explain what makes these impo...
In your example, why does the presence of negative externalities prevent a competitive market from reaching an allocatively efficient outcome? Provide of examples of positive and negative externalities and effects. Explain what positive and negative externaliti...
Explain how the profit-maximizing rule of setting P=MC leads a perfectly competitive market to be allocatively efficient.If one assumes perfect competition, CRS, and profit maximization motive of a firm, why is the economic profit equal to zero?