76 285
Assignments Done
Successfully Done
In May 2019

Answer to Question #67071 in Microeconomics for Lisa

Question #67071
What market structure is used to benchmark allocative efficiency and why do we use it? Illustrate and explain.
Expert's answer
Such market structure as perfect competition is used to benchmark allocative efficiency, because when conditions of perfect competition hold, it has been proven that a market will reach an equilibrium in which the quantity supplied for every product or service, including labor, equals the quantity demanded at the current price. This equilibrium will be a Pareto optimum, meaning that nobody can be made better off by exchange without making someone else worse off.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

Privacy policy Terms and Conditions