b) How does perfect competition lead to allocative and productive efficiency? (Explain using less than 100 words).

Q: what is difference between perfect and pure competition? Highlight the assumptions of perfect…

A: Pure Competition is a subpart of perfect competition Pure competition is a market situation where…

Q: Which of the following distinguishes the short run from the long run in pure competition?

A: Pure Competition or Perfect Competition is defined as a theoretical market structure where all the…

Q: Explain how the long-run equilibrium in a perfectly competitive industry achieves 'allocative…

A: When profit-maximizing companies in perfectly competitive markets combine with utility-maximizing…

Q: Explain the FOUR(4) assumptions of perfect competition.

A: Perfect competition is a type of a market structure.

Q: PRODUCTION 2 4 10 12 14 LEVEL MARKET 3 3 3 3 PRICE ТОTAL INCOME TOTAL FIXED COST 14 14 14 14 14 14…

A: The following formulas need to calculate the value of the missing colunm: Total Income = Production…

Q: What are the assumptions of perfect competition?  What are the prospects for profitability in the…

A: The perfect competition is a theoretical market structure, which follows some assumptions. In this…

Q: Which of the following is not an essential condition of pure competition?

A: Perfectly competitive market refers to the market structure where the large number of buyers and…

Q: In perfect competition, why do firms act as price takers? What happens if they charge a different…

A: In a perfect competitive market, the firm will earn a super normal profit in the short run,…

Q: is walmart an example of perfect competition ? Discuss the product they sell, entry and exit to the…

A: Wal-Mart is not the best example of perfect competition. As it can be configured as an oligopoly.…

Q: Which of the following is NOT a characteristic of perfect competition?

A: To find: Which of the following is NOT a characteristic of perfect competition?

Q: Do you agree with the following statement and explain why! "A firm that operates in a perfectly…

A: Perfectly competitive market is a market where there are many buyers and sellers in the market…

Q: Explain what is Perfect Competition with example and list 3 features of Perfect Competition market

A: There are different type of market structures like Perfect Competition, Monopoly , Monopolistic…

Q: The basic model of pure competition reviewed in this chapter finds that in the long run all firms in…

A: The pure competition indicates that the market is perfectly competitive. The main features of the…

Q: Discuss the long-run benefits of running a firm in perfect competition.

A:

Q: What are three short-run outcomes in the perfect competition? When a firm takes the short-down…

A: A perfect competition is a market structure in which many vendors and buyers are present. In this…

Q: What are three short-run outcomes in the perfect competition?

A: In the short-run, the perfect competitive firms, can have three outcomes.

Q: the shape of the SR supply curve of a perfectly competitive firm with a diagram.

A: the shape of the SR supply curve of a perfectly competitive firm is

Q: Why perfect competition considered as a price taker?

A: According to economic theory, perfect competition exists when all companies sell the same things,…

Q: If the firms in a competitive industry incur an economic loss, what happens to supply, price,…

A: If firms earn economic loss, some of them will exit the market. This will decrease market supply,…

Q: 1. With a new understanding of economic analysis, Corn Mart, wants your opinion on what to do.…

A: As given market price is $4. By using following formula to calculate missing values of table Total…

Q: why do economists and policy makers use perfect competition as a benchmark to analyze market…

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: What are the advantages of pure competition?

A: Answer: A purely competitive business is the most efficient type of operation. This is due to the…

Q: How do perfectly competitive firms make output decisions. Discuss in detail.

A: In a perfectly competitive market structure there exists a large number of buyers and sellers of the…

Q: a) How does imperfect competition differ from perfect competition? b)  True or False and explain: If…

A: Ans. a In perfect competition there are large number of buyers and sellers and sellers are selling…

Q: How does perfect competition lead to allocative and productive efficiency? Perfect competition leads…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Give examples, when the conditions of pure and perfect competition are relatively accomplished.

A: Example when conditions of pure and perfect competition would be accomplished is agricultural…

Q: Can you explain what is Perfect Competition and how does Perfect competition work?

A: Market structure refers to the place where the transaction of goods and services takes place between…

Q: What does that mean in terms of long-run profit?

A: Perfectly Competitive Market is the market in which buyers and sellers are large in numbers and they…

Q: Draw the following cases for perfect competition. Also perform box analysis for profit/loss. P>ATC…

A: A perfectly competitive market is one where there are large number of buyers and sellers. The good…

Q: Why a competitive firm is price taker? Explain graphically why perfect competition is preferable to…

A: When the following conditions exist, firms are said to be in perfect competition: (1) many firms…

Q: explains why in perfect competition, there are no economic profits or losses in the long run?

A: A market is a place where the buyers and sellers interacts with each other and decides to exchange…

Q: "There are some technologies for which it is impossible to maximize profit in the long run. "…

A: Maximization of profits occur at the point where the marginal revenue and marginal cost are equal.

Q: Explain why in the long run perfect competitive firms can only break even.

A: Perfect competition refers to the market where homogeneous products are produced. An individual firm…

Q: explain how the costs of the firm are calculated, and the way that prices are determined in perfect…

A: Perfect competition refers to a market situation in which there are many buyers and sellers in the…

Q: Explain what so special about perfect competition

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 1. In perfect competition, price equals marginal cost. Why is this not possible when there are…

A: In a perfectly competitive market, it can be seen that the market output is one at which price…

Q: What is Perfect competition? (50 words only)

A: A market arrangement in which numerous enterprises provide a homogeneous product is known as perfect…

Q: What does perfect competition mean and what are the concepts of it?

A: Perfect competition refers to the market structure featuring more number of sellers and buyers in…

Q: Describe a perfectly competitive market structure and its characteristics?

A: Perfectly competitive market structure is the market structure in which,there is no or negligible…

Productive and Allocative Efficiency Analysis

Productive efficiency, also referred to as production efficiency is a term in economics describing the level at which a company is operating at its maximum capacity. Beyond this point, the entity will be unable to manufacture any additional goods without cutting down another product’s production level. This occurrence is an outcome of production happening alongside a Production Possibility Frontier (PPF).