Microeconomics (Christopher T.S. Ragan) (z-lib.org)

In the last two chapters we have developed the demand-and-supply model. Now we are going to use that model to look at some gover ...

Chapter Outline 12.1 Productive and Allocative Efficiency 12.2 Economic Regulation to Promote Efficiency 12.3 Canadian Competiti ...

5.1 Government-Controlled Prices In a number of important cases, governments control the price at which a product must be bought ...

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

Figure 5-1 The Determination of Quantity Exchanged in Disequilibrium The key to the answer is the fact that any voluntary market ...

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

At any disequilibrium price, quantity exchanged is determined by the lesser of quantity demanded or quantity supplied. ...

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

Figure 5-2 A Binding Price Floor Price Floors Governments sometimes establish a price floor, which is the minimum permissible pr ...

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

A binding price floor leads to excess supply. The free-market equilibrium is at E, with price and quantity The government now es ...

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

products at the price floor are better off than if they had to accept the lower equilibrium price. Workers and farmers are among ...

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

examines the effects of implementing a minimum wage in a competitive labour market and provides a basis for understanding the of ...

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

labour services to Thus, the clear effect of the binding minimum wage, as seen in the figure, is to generate unemployment—worker ...

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

proceed to that more advanced discussion, however, this box provides an excellent example of the economic effects of a binding p ...

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