In the argument for why perfect competition is allocatively efficient, the price that people are willing...

In the argument for why perfect competition is allocatively efficient, the price that people are willing to pay represents the gains to society and the marginal cost to the firm represents the costs to society. Can you think of some social costs or issues that are not included in the marginal cost to the firm? Or some social gains that are not included in what people pay for a good?

Expert Solution

Rahul Sunny answered 1 year ago

What is first-degree price discrimination? Is the outcome under perfect price discrimination allocatively and productively efficient?...

What is first-degree price discrimination? Is the outcome under perfect price discrimination allocatively and productively efficient? How does your answer change if the monopolist cannot price discriminate?

I'd this firm productively efficient? Is it allocatively efficiency? explain why or why not?

The type of market structure most likely to be allocatively efficient is pure monopoly. monopolistic competition....

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1. Why do economists consider perfect competition to be the most efficient market structure? 2. Why...

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2. Monopolists are neither productively efficient nor allocative efficient, and perfect competition is both productively efficient...

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Why is Perfect Competition the “best” form of market structure? Does Perfect Competition exist? Describe the...

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Perfect competition will not necessarily be efficient or equitable. You will also learn how government can...

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Perfect Competition

A competitive industry consists of m identical firms, each with a cost function of C(Y)=Y2+1. Suppose also that the market demand is given by P=100-Y. Calculate the equilibrium number of firms in the market.

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