Why is low and zero inflation bad? Explain why the wage-setting (WS) curve is negatively sloped. In a perfectly competitive labor market, why does the imposition of a minimum wage above the equilibrium wage level lead to allocative inefficiency?
The directional profit efficiency measure:On why profit inefficiency is either technical or allocative. Zofio J L,Paster J T,Aparicio J. Journal of Productivity Analysis . 2013Zofio JL, Pastor JT, Aparicio J (2013) The directional profit efficiency measure: on why profit inefficiency is either ...
What is allocative and technical inefficiency? Why does it occur under a monopoly, and why is it undesirable from society's standpoint? Explain why the market system cannot deliver a sustainable competitive equilibrium in the case of a natural monopoly. Why are monopolies allowed to exist? Why ...
Why is a monopoly market structure often criticised? Is a competitive market more economically efficient than a monopoly? Explain. Explain why monopoly is not a preferred market system. What is allocative and technical inefficiency? Why does it occur under a monopoly, and why is it undesirable fr...
Compare the 4 market models with regard to allocative and productive efficiency. Do they achieve it? Why or why not? Why the private market for flu vaccinations would produce an inefficient outcome? Explain why the exercise of market power is not necessari...
Why isn't allocative efficiency where the price is equal to the average cost? Explain why it is important that prices are flexible in our economy. Explain why an externality generates inefficiency in a free market. Explain why a public good is a market failure where the market will not prov...
Why is it difficult for the government to control and regulate monopolistic enterprises? How does game theory explain why monopolies exist? Explain whether perfectly competitive firms and monopolies achieve productive and allocative efficiency. Explain why or why not. Give the t...
In a perfectly competitive labor market, why does the imposition of a minimum wage above the equilibrium wage level lead to allocative inefficiency? Why do upward-sloping labor supply curves to firms cause the marginal expense of labor to exceed the wage rate? Union members are generally paid ...
Why is allocative efficiency the point where marginal cost is equal to price? Does globalization have any implications for environmental policy? Why or why not? Why are the negative externalities associated with the new Barclays Center in Brooklyn likely to be greater than t...
Because it produces both Allocative and Productive inefficiency c. Because a monopoly does not promote income equality d. A Why is a single-price monopoly inefficient? How does a monopoly that competes for price compare to a perfectly competitive firm, and wha...