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 infl...
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. ...
Why is the marginal revenue curve for a perfectly competitive firm is the same as its demand curve? Why is the marginal revenue curve for a perfectly competitive firm the same as its demand curve? Is a monopolist allocatively efficient? Why or why not? Why does a mon...
productively efficient. These points indicate that all available resources are fully utilized, and the company is producing goods at its maximum output level. However, to determine which points are allocatively efficient, we need to consider the preferences and priorities of the company or individuals...
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productively efficient. These points indicate that all available resources are fully utilized, and the company is producing goods at its maximum output level. However, to determine which points are allocatively efficient, we need to consider the preferences and priorities of the company or individuals...