WebAllocative efficiency means that the particular mix of goods a society produces represents the combination that society most desires. For example, often a society with a younger population has a preference for production of education, over production of health care. WebAllocative efficiency means that among the points on the production possibility frontier, the chosen point is socially preferred—at least in a particular and specific sense. In a perfectly competitive market, price will be equal to the marginal cost of production.
The Inefficiency of Monopoly Microeconomics - Lumen Learning
WebMar 24, 2024 · The allocative function in budgeting determines on what government revenue will be spent. Because a high proportion of national income is now devoted to public expenditure, allocation decisions become more significant in political and economic terms. WebAt long-run equilibrium in monopolistic competition, there is Multiple Choice both allocative and productive efficiency. neither allocative nor productive efficiency. productive efficiency but not allocative efficiency. allocative efficiency but not productive efficiency. 動けない場所 怖い
Solved What is meant by allocative efficiency? Allocative - Chegg
Weballocative, but not productive efficiency Which of the following best describes a firm that is a price taker? It competes with other producers who produce differentiated products. It will lose all sales if it prices its product in excess of the market equilibrium price. It must be a relatively large producer compared with other firms in the market. WebAllocative efficiency is an economic concept regarding efficiency at the social or societal level. It refers to producing the optimal quantity of some output, the quantity where the marginal benefit to society of one more unit just equals the marginal cost. WebAug 7, 2024 · Allocative efficiency means that the particular mix of goods a society produces represents the combination that society most desires. For example, often a society with a younger population has a preference for production of … 動けない 牛