Question

Economic efficiency in a competitive market is achieved when

Economic efficiency in a competitive market is achieved when

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:(1)

A competitive market achived Economic efficiency when the equilibrium output is supplied at minimum average cost. attained in the long run for a competitive market.Bacouse where the demand price and supply are price equal. ... Competition on the supply side forces sellers to sell the good at the minimum supply price that they are willing and able to accept.when every economic good is optimally allocated across production and consumption so that no change to the arrangement can be made to make anyone better off without making someone else worse off.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is economic efficiency? What are the benefits or limitations of markets when economic efficiency is...
What is economic efficiency? What are the benefits or limitations of markets when economic efficiency is achieved?
6. Markets fail when allocative efficiency is not achieved; when a factory emits toxic smoke, a...
6. Markets fail when allocative efficiency is not achieved; when a factory emits toxic smoke, a negative externality is created. Why do economists justify a tax to penalize the factory in this case?
Do you agree with the following statement? “Efficiency cannot be achieved when externalities exist.” Explain your...
Do you agree with the following statement? “Efficiency cannot be achieved when externalities exist.” Explain your view
1. Suppose the price of cheese rises. In the market for pizza, one would expect that...
1. Suppose the price of cheese rises. In the market for pizza, one would expect that the demand for pizza would increase, and the price would increase. the demand for pizza would decrease, and price would fall. the supply of pizza would increase, and the price would fall. the supply of pizza would decrease, and price would rise. 2. Ronald Coase was awarded the 1991 Nobel Prize in Economics primarily for addressing problems related to externalities. Which of the following...
Consider a perfectly competitive market for a good with a negative externality. Will the market achieve...
Consider a perfectly competitive market for a good with a negative externality. Will the market achieve economic efficiency in the absence of regulation? Justify your answer. (hint: consider rational/marginal analysis)
Positive economic profit in a perfectly competitive market will increase market competition. Discuss
Positive economic profit in a perfectly competitive market will increase market competition. Discuss
Why Economic Efficiency Condition: ATC is at a minimum and why profit maximizing firms operating in...
Why Economic Efficiency Condition: ATC is at a minimum and why profit maximizing firms operating in a perfectly competitive market will generate allocative and normal profit will result in economic efficiency (MR = MC, MR = P, P = MC ,  P = ATC , MC = ATC so ATC must be at a minimum)
In the short run, if firms in a perfectly competitive market are experiencing economic loss, then...
In the short run, if firms in a perfectly competitive market are experiencing economic loss, then in the long run, firms will _____ the market and economic profits will _____. enter, decrease enter, increase exit, decrease exit, increase
a)In a typical competitive market (not in health care):how does competition work to promote the efficiency...
a)In a typical competitive market (not in health care):how does competition work to promote the efficiency of organizations operating in the market? b) What are the consequences for an organization (and its employees) that fails to operate efficiently in a competitive market? c) What are the consequences for a hospital that fails to operate efficiently in the NHS Internal Market? d) In what ways are the incentives providers face in the NHS system similar to private firms in a competitive...
True or False 6. When a market reaches allocation efficiency economic welfare is maintained 7. Given...
True or False 6. When a market reaches allocation efficiency economic welfare is maintained 7. Given demand and supply, deadweight loss increases as the size of tax gets larger 8. Holding supply curve and rate of tax constant, deadweight loss is smaller when demand is more elastic 9. In production, when marginal product of the fifth worker is larger than the average product of the first four workers (APL) who have already been hired, APL increases as we hire the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT