Question

Explain the three ways economist define efficiency. What is the economic definition of market failure? What...

Explain the three ways economist define efficiency. What is the economic definition of market failure? What are the four situations where markets fail? What market structure is least likely to represent a failed market?

Homework Answers

Answer #1

Soln. Three ways by which economist define the efficiency are -

1. Measuring the price level

2. Measuring the employment rate

3. Measuring the interest rate

Market Failure - The economic definition of market failure is the inefficient distribution of the goods and services in the free market. It means, available resources are not properly utilized to produce the optimum level of production.

  Four situations where market fails -

  1. Lack of public goods

2. Positive and negative externalities

3. Market control

4. Underprovision of merit goods and overprovision of demerit goods

Perfect competition market structure is least likely to represent a failed market.

  

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain three reasons for market failure and the ways government can intervene to deal with those...
Explain three reasons for market failure and the ways government can intervene to deal with those instances of market failure
1. Explain the following terms a)allocative efficiency and b) productive efficiency 2. Of the 4 markets...
1. Explain the following terms a)allocative efficiency and b) productive efficiency 2. Of the 4 markets discussed, which market structure can achieve allocative and productive efficiency in the long run 3. Which market structure can have both homogeneous and differentiated products 4. Describe the characteristics of a pure monopoly 5. What are the benefits of monopolistic competition? 6. Please explain how shut-down rule is applied. 7. Discuss the major barriers to entry into an industry 8. What is the meaning...
1) Explain three ways that a firm that is considering entering an overseas market can use...
1) Explain three ways that a firm that is considering entering an overseas market can use market orientation to its advantage. 2)   Explain two reasons why culture may play a role in a company repositioning its brand when entering a foreign market 3) Explain how and why the two different thinking styles (analytic vs. holistic) can be applied differently to explain country-of-origin effects. 4) Explain three challenges that managers are likely to encounter when implementing value-based pricing and potential ways...
Which of the following statements does  not represent a market failure, a situation in which the pursuit...
Which of the following statements does  not represent a market failure, a situation in which the pursuit of profit will not result in a net increase in consumer satisfaction? Situations in which externalities have been internalized result in an equilibrium in the exchange price between true costs and benefits. The pursuit of individual self-interest results in a worse outcome than would have occurred had the behavior of the parties involved in the economic exchange been coordinated through cooperation or regulation rather...
Explain the intent or meaning of the phrase “defense in depth”, especially noting what the three...
Explain the intent or meaning of the phrase “defense in depth”, especially noting what the three key elements of defense in depth are and providing an example of a failure in each domain. Define defense in depth: Domain 1: Domain 2: Domain 3: Failure in Domain 1: Failure in Domain 2:       G. Failure in Domain 3: Describe the four common methods for cracking hashed passwords as discussed in the presentation on the topic. – – – –
Identify, define, and explain (using examples) the three different targeting strategies used by companies. A marketing...
Identify, define, and explain (using examples) the three different targeting strategies used by companies. A marketing director wants to create a marketing strategy to target a new international segment in addition to the already targeted domestic market. Identify and explain three influences of culture that means a different strategy is needed for the new segment.   Identify at least four differences between B2B consumers and B2C consumers, giving examples for each difference. Paragraph for each .
Define "self-disclosure" and explain how it varies in degrees and changes over time and what can...
Define "self-disclosure" and explain how it varies in degrees and changes over time and what can happen to a relationship over time if self-disclosures are not reciprocal.Explain each of the three relational dialectics the four ways we handle dialectical tensions.Explain what confirming and disconfirming climates are and the three types of messages that create confirming and disconfirming climates.Briefly describe the six steps of developing relationships.Explain how gender, cultural diversity, and sexual attraction challenges friendships.
Market power can be measured in various ways; explain. Looking at both performance and structure, what...
Market power can be measured in various ways; explain. Looking at both performance and structure, what would you conclude about which of industries A or B has greater market power? Industry A 11 firms, with market shares 20%, 20%, 20%, 15%, 10%, 5%, 2%, 2%, 2%, 2%, 2% P= $14, MC = $10, η = 1.5 Industry B 25 firms, with market shares 40%, 5%, 5%, 5%, 5%, 2%, …… 2% (20 firms each with 2%) P = $12, MC...
(a) [20 marks] Define and explain the term “technological progress”. Illustrate your definition as appropriate. How...
(a) [20 marks] Define and explain the term “technological progress”. Illustrate your definition as appropriate. How can technological progress be measured? Illustrate your answer with two examples. (b) [20 marks in total] Explain how economic growth can be related to technological progress. Which theoretical growth model best applies to each of the facts outlined in points (i) – (iv), below? Explain. i. [5 marks] Real wages were at the same level in England in the year 1280 as in the...
I need a comment about this post / What I like about this post What are...
I need a comment about this post / What I like about this post What are the five levels (from lowest to highest) of regional economic integration? Explain. The lowest level of economic integration is Free Trade. Free trade area seek to remove all barriers to trade among themselves but where each country determines its own barriers against nonmembers. The next degree of integration is Customs Union. Customs union includes Free trade guidelines but sets common trade policy against nonmembers....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT