I. Study Exercises
- Fill-in-the-Blank
- Review
- Problems
- 12 Economic Efficiency and Public Policy
A. Chapter Outline
B. Learning Objectives (LO)
C. 12.1 Productive and Allocative Efficiency - Productive Efficiency
a. Productive Efficiency and the Production Possibilities Boundary - Allocative Efficiency
a. Allocative Efficiency and the Production Possibilities Boundary - Which Market Structures Are Efficient?
a. Perfect Competition
b. Monopoly
c. Monopolistic Competition and Oligopoly - Allocative Efficiency and Total Surplus
a. Consumer and Producer Surplus
b. The Allocative Efficiency of Perfect Competition Revisited
c. The Allocative Inefficiency of Monopoly Revisited - Allocative Efficiency and Market Failure
D. 12.2 Economic Regulation to Promote Efficiency - Regulation of Natural Monopolies
a. Short-Run Price and Output
a. 1. Marginal-Cost Pricing
b. 2. Two-Part Tariff
c. 3. Average-Cost Pricing