Answered: a) Describe the features of a perfect…

a) Describe the features of a perfect market and explain the difference between Allocational Efficiency, Pricing Efficiency and Operational Efficiency in your own simple terms

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools

Section: Chapter Questions

Problem 39CYBK

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Question

ASSIGNMENT FIVE
a) Describe the features of a perfect market and explain the difference between Allocational Efficiency, Pricing Efficiency and Operational Efficiency in your own simple terms.

b) Describe the difference benchmarks that can be used for ratio analysis.

Definition Definition State in which the marginal benefit to a consumer is equal to the marginal cost of producing a product. Allocative efficiency occurs when all the market participants (buyers and sellers) have all of the knowledge required to make informed decisions regarding consumption and production of goods and services.

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