Pure competition and efficiency, Microeconomics

Assignment Help:

Allocative efficiency criteria are satisfied by the competitive model.  Because P = MC, in each market in the economy there is no over- or under- allocation of resources in this economy.  This is due to the cost of production for the last unit of production is what shows supply, and that cost of production includes only the engineering costs.  Though, this result is obtained only if all industries in that economic system are purely competitive.  This is the contribution of the models of distribution formed by economists working in the marginalists traditions.  The problem is that this is economic theory that is not essentially supported by empirical evidence.

 


Related Discussions:- Pure competition and efficiency

Revenue and profit maximization, Revenue and Profit Maximization: When...

Revenue and Profit Maximization: Whenever a good is produced, the individual firm which has produced incurs costs which are are referred to as private costs and the society in

Game theory, The following represents the potential outcomes of your first ...

The following represents the potential outcomes of your first salary negotiation after graduation: Assuming this is a sequential move game with the employer moving first, indicate

Employment and unemployment policy, EMPLOYMENT AND UNEMPLOYMENT POLICY: ...

EMPLOYMENT AND UNEMPLOYMENT POLICY: Engagement of a person in any economic activity is central to the concept of identifying a worker. A worker is one who participates in any

Economics, #question.what is meant by ppc?illustrate the central problems o...

#question.what is meant by ppc?illustrate the central problems of aneconomy with this curve.

Time serie, uses of time series in indian economy

uses of time series in indian economy

Theory., ExplainBainlimitpricetheory

ExplainBainlimitpricetheory

Microeconomics, characteristics of microeconomics

characteristics of microeconomics

Programming and input-output models, Normal 0 false false f...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Market supply and increase in supply, Market supply and Increase in supply:...

Market supply and Increase in supply: Market supply is the total quantity of a product that all firms in an industry are willing to offer for sale at a given market price an

Supply analysis, what is the explanation about supply analysis?How to under...

what is the explanation about supply analysis?How to understand?

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