What does the efficient market mean? how is it achieved?

What does the efficient market mean? how is it achieved?

Expert Solution

A market is efficient when maximum amount of goods and services are being produced with a given level of resources, and it is not possible to increase output further without increasing the amount of inputs.

Market efficiency is achieved when sum of consumer and producer surplus is maximised.

Rahul Sunny answered 2 years ago

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What does the efficient market mean? how is it achieved?

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