Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 12.6, Problem 4RQ
To determine
Why resources are used efficiently in a competitive market.
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What are the two essential characteristics of a competitive market?
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What factors contribute to achieving allocative efficiency in a competitive market, and how does it benefit both consumers and producers?
Chapter 12 Solutions
Macroeconomics
Ch. 12.1 - Prob. 1RQCh. 12.1 - Prob. 2RQCh. 12.1 - Prob. 3RQCh. 12.1 - Prob. 4RQCh. 12.2 - Prob. 1RQCh. 12.2 - Prob. 2RQCh. 12.2 - Prob. 3RQCh. 12.3 - Prob. 1RQCh. 12.3 - Prob. 2RQCh. 12.3 - Prob. 3RQ
Ch. 12.4 - Prob. 1RQCh. 12.4 - Prob. 2RQCh. 12.5 - Prob. 1RQCh. 12.5 - Prob. 2RQCh. 12.5 - Prob. 3RQCh. 12.6 - Prob. 1RQCh. 12.6 - Prob. 2RQCh. 12.6 - Prob. 3RQCh. 12.6 - Prob. 4RQCh. 12 - Prob. 1SPACh. 12 - Prob. 2SPACh. 12 - Prob. 3SPACh. 12 - Prob. 4SPACh. 12 - Prob. 5SPACh. 12 - Prob. 6SPACh. 12 - Prob. 7SPACh. 12 - Prob. 8SPACh. 12 - Prob. 9SPACh. 12 - Prob. 10APACh. 12 - Prob. 11APACh. 12 - Prob. 12APACh. 12 - Prob. 13APACh. 12 - Prob. 14APACh. 12 - Prob. 15APACh. 12 - Prob. 16APACh. 12 - Prob. 17APACh. 12 - Prob. 18APACh. 12 - Prob. 19APACh. 12 - Prob. 20APACh. 12 - Prob. 21APACh. 12 - Prob. 22APACh. 12 - Prob. 23APA
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Similar questions
- If new technology in a perfectly competitive market brings about a substantial reduction in costs of production,how will this affect the market?arrow_forwardHow do firms in a competitive market work?arrow_forwardHow do firms or business in a competitive market decide what prices are and how does the economy look like? What if they are all selling the same product?arrow_forward
- Analyze the likely effects of a perfectly competitive market on price, quality, and innovation of goods and services?arrow_forwardIs a competitive market “efficient”? Define efficiency and explain.arrow_forwardExplain with examples: Perfectly competitive market is beneficial for the consumer in a nation.arrow_forward
- Long-run equilibrium in perfectly competitive markets meets two important conditions: allocative efficiency and _________ efficiency.arrow_forwardWhich dimension is related to market competition? Social dimension Natural dimension Socio-cultural dimension Economic dimensionarrow_forwardProductive efficiency and allocative efficiency are two concepts achieved in the long run in a perfectly competitive market. These are the two reasons why we call them “perfect.” How would you use these two concepts to analyze other market structures and label them “imperfect?”arrow_forward
- Looking around your city, what businesses do you think come closest to the model of a perfectly competitive market? Explain why this is the case using correct economic terms and concepts.arrow_forwardUsing the tools of economic analysis that you learned, analyze the behavior of the enterprise operating in the perfectly competitive market, in both the short and long term, if it achieves an economic loss in the short term.arrow_forwardIn the long run, in a competitive economy, companies use resources until the extra or marginal production costs are: 1. Less than the price of the product 2. Greater than the price of the product 3. Equal to the price of the product 4. Equal to your earningsarrow_forward
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