Discuss the economic conditions that are necessary to achieve productive and allocative efficiency under pure competition?

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: 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: What is the Imperfect competition that refers to any form of market structure other than perfect…

A: Perfect competition refers to a market in which there is many seller and buyer dealing in a…

Q: Suppose Sam sells apples, picked from his apple tree, in a competitive market. Assume all apples are…

A: a) Marginal cost is expanding/increasing as an ever-increasing number of variable input sources are…

Q: Describe any four requirements for a perfectly competitive goods market

A: A perfectly competitive market refers to the place where sellers charge the same price from buyers…

Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

A: A perfect competition is a market structure where the price of the commodity sold is same and is…

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: Draw a two panel Diagram depicting a firm in a competitive market making a profit on the Left hand…

A: The perfectly competitive market is the market structure where a large number of firms compete in…

Q: What is then the use or relevance of the purely competitive model?

A: Pure competition is a market system in which multiple firms compete for the same clients. The best…

Q: What are the determinants of the relationship between economies of scale and market structure.

A: We are going to discuss the definition of economies of scale and market structure to answer this…

Q: Fill in the columns in the following table. What quantity should a profit-maximizing firm produce?…

A: Formula used for completing the table below: TC = TFC + TVC MC = TCn - TCn-1 TR = P*Q Profit = TR -…

Q: Assume firms decide to enter the market, how will this affect market price and quantity in the long…

A: In a market with perfect competition, every manufacturer offers the same products or services. There…

Q: What is the relationship between economies of scale and the level of market competition?

A: Economies of scale help more than just the company that produces the goods. Consumers will benefit…

Q: When is allocative efficiency met in a perfectly competitive market? when price equals average cost…

A: When talking about allocative efficiency, it is the market situation when a market is producing a…

Q: Evaluate the view that the main goal of firms will always be profit maximization

A: The profit is the excess revenue made by the firms after deducting the total cost of production from…

Q: Explain how economics make profit or loss when firms are perfectly competitive.

A: In a competitive market there are large number of firms producing similar and identical products…

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: Hi there. can you please assist on the following question  1. Describe any four requirements for a…

A: Answer: Perfectly competitive goods market: It is a type of market where there is a large number of…

Q: nsider the competitive market for dress shirts. The following graph shows the marginal cost (MC),…

A: A shutdown point is a degree of tasks at which an organization encounters no advantage for…

Q: What is pure or perfect competition? Define and discuss.

A: A firm will  attain profit if its price exceeds average total cost

Q: Farmer Jones grows oranges in Florida. Suppose the market for oranges is perfectly competitive…

A: In a perfectly competitive market, there are a large number of firms producing similar and identical…

Q: Brown grows peaches in Georgia. Suppose the market for peaches is perfecty competitive and that the…

A: A perfectly competitive firm maximizes profit or minimize losses by producing output at a level…

Q: Discuss the equilibrium conditions for a market under perfect competition.

A: Perfect competition is an economic phrase for a hypothetical market system in which all suppliers…

Q: Free exchange occurs under perfect competition and mutually benefits both consumers and producers.…

A: Free trade basically refers to  that countries can import and export goods without having to deal…

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: Briefly explain the reason for why in a competitive market we expect economic profits to be zero in…

A: A competitive market, also known as perfect competition, is a kind of market where there are a large…

Q: Suppose the graph depicts the marginal cost (MC) curves of two profit maximizing Texas cotton…

A: In perfectly competitive market, The price curve is horizontal line and the firms sell output at the…

Q: In competitive markets, there are many small firms with each firm unable to influence the market…

A:

Q: When is it the right time when a firm will enter a competitive market?

A: A competitive market is considered as one where firms have no opportunity to deviate from market…

Q: Suppose that Jacques, Julia, Cat, and Guy are potential suppliers of catering services for weddings.…

A: Given:  There are 4 potential suppliers of catering services.  Name Cost Jacques $50,000…

Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

A: Perfect competition is many sellers dealing in commodity which is same in quality and price at which…

Q: Discuss in detail the short and long run laws of production.

A: Short run law of production says that when more and more units of variable inputs are added to fixed…

Q: How applicable is this assumption of market clearing to the market for fast food meals in the short…

A: Economists use various assumptions at the time of developing a model or theory. Such assumptions…

Q: What type of industry has the characteristics where there are many producers, they are able to…

A: The industry is said to be Monopolistic Competition. Monopolistic competition is the market…

Q: In competitive markets, there are many small firms with each firm unable to influence the market…

A: Given: Price = $20 TC = 50 +2Q + 3Q2 MC= dTC/dQ = 2+6Q

Q: Suppose that the market for cashmere sweaters is a competitive market. The following graph shows the…

A: A perfectly competitive firm maximizes profit by producing output at a level where Price is equal to…

Q: Which of the following is true concerning purely competitive industries?

A: The perfect competition market consists of a large number of sellers who are price takers as the…

Q: List the conditions needed for pure competition to exist ?

A: The Pure competition is the competition where there are large number of the buyers and the sellers…

Q: Assuming that the market for cigarettes is in perfect competition, what do allocative and productive…

A: In a perfectly competitive market, when both the profit-maximizing firms and the utility-maximizing…

Q: ou read in a business magazine that computer firms are reaping high profits. With the theory of…

A: (a)   Assume that the computer industry is perfectly competitive. Earning high profit which attracts…

Q: Briefly describe the spectrum of competitive situations faced by firms in markets.

A: Monopoly, perfect competition, monopolistic competition, and oligopoly are the different competitive…

Q: Which of the following economists was an originator of the theory of imperfect competition?…

A: The correct answer with detailed explanation is as follows:-

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).