Efficiency of a competitive market, Microeconomics

Assignment Help:

The Efficiency of a Competitive Market

*? When an competitive markets generate an inefficient allocation of the resources or market failure?

  1) Externalities

  • Costs or benefits which do not show up as part of the market price (for example pollution)

 2) Lack of Information

  • Imperfect information prevents the consumers from making utility maximizing decisions.

*? Government intervention in these markets increase efficiency.

*? Government intervention without market failure creates inefficiency or the deadweight loss.


Related Discussions:- Efficiency of a competitive market

Marginal revenur and cost, If coolest icecream parlor has been closing at 5...

If coolest icecream parlor has been closing at 5pm with $120 of marginal revenue and $80 of marginal cost for the last hour open, what should coolest icecream do to maximize profit

Investment.., a reduction in investment spending would lead to

a reduction in investment spending would lead to

Explain how the price system eliminates a surplus, Explain how the price sy...

Explain how the price system eliminates a surplus. The meaning of surplus is that quantity demanded is less as compared to the quantity supplied.  This will lead to downward pr

1, a) Consider the following flows (in thousand of people) between the vari...

a) Consider the following flows (in thousand of people) between the various labour market states in a particular month: UE = 240 000; UNLF = 180 000; EU = 190 000; NLFU = 220 000

Economic reforms and reduction of regional disparities, Economic Reforms an...

Economic Reforms and Reduction of Regional Disparities: Another important objective of development is to reduce regional disparities. Government has been helping the backward

Demand of pepsi cola goes up, If the quantity demanded of Pepsi Cola goes u...

If the quantity demanded of Pepsi Cola goes up, and its supply enhances what will occur in the market for Pepsi?

#monopoly, Write a 1-2 page summary on markey failure

Write a 1-2 page summary on markey failure

Economics, Ask questiowhat are the importance of the branches of economics

Ask questiowhat are the importance of the branches of economics

Indifference curves, why men and womens indifference curves are different

why men and womens indifference curves are different

Bains model of limit pricing., explain diagrammatically the bains model of ...

explain diagrammatically the bains model of limit pricing.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd