Microeconomics,, 16th Canadian Edition

Table12-1 Review of Four Market Structures monopolistic competition and oligopoly. Table 12-1 provides a review of the four mark ...

We begin our discussion in this chapter by examining the various concepts of efficiency used by economists. This discussion will ...

12. 1 Productive and Allocative Efficiency Efficiency Efficiency requires that factors of production be fully employed, since id ...

3. If too much of one product and too little of another product are produced, the economy overall is being inefficient. To take ...

Productive efficiency has two aspects, one concerning production within each firm and one concerning the allocation of productio ...

Figure 12-1 Productive Efficiency for the Industry Productive efficiency for the industry requires that the marginal cost of pro ...

reallocation of output can reduce costs—productive efficiency will have been achieved. This cost saving can go on as long as the ...

Figure 12-2 Productive Efficiency and the Production Possibilities Boundary Now think about the economy’s production possibiliti ...

that can be produced when the economy’s resources are fully employed and productively efficient. Any point inside the curve, suc ...

Allocative Efficiency Allocative efficiency concerns the quantities of the various products to be produced. When the combination ...

Figure 12-3 Marginal Cost and Marginal Value in a Single Market curve shows the marginal value to consumers; the market supply c ...

Figure 12-4 Allocative Efficiency and the Production Possibilities Boundary Allocative Efficiency and the Production Possibiliti ...

Allocative efficiency requires that all goods be produced to the point where the marginal cost to producers equals the marginal ...

are productively efficient. The two demand-and-supply diagrams show the competitive markets for wheat and steel. These two diagr ...

Which Market Structures Are Efficient? We now know that for productive efficiency, all firms must be minimizing their costs and ...

monopolist will operate on its LRAC curve, and will therefore be productively efficient. Since the firm is alone in the industry ...

competition and monopoly are present in the economy, the more we can expect market prices to exceed marginal cost, and thus the ...

Allocative Efficiency and Total Surplus We have now examined allocative efficiency using the concepts of marginal value to consu ...

Figure 12-5 Consumer and Producer Surplus in a Competitive Market market price is and consumers buy units of the product, consum ...

amount that any profit-maximizing producer will accept for the product. To accept any amount less than the marginal cost would r ...