Explain production possibility curve & competitive firm’s , Macroeconomics

(a)   Explain the meaning of efficiency in economics and use a sketch diagram to illustrate its attainment by reference to the Production Possibility Curve.  

(b)  Refer to the concepts of allocative efficiency, productive efficiency and dynamic efficiency to explain how a perfectly competitive market allocates resources to achieve the maximum satisfaction of material wants. Use a diagram to illustrate a perfectly competitive firm's long-run equilibrium.

(c)   Referring to the same three concepts of efficiency, explain why a monopoly market structure is often regarded as less efficient than a perfectly competitive market.  Use a diagram to illustrate your answer.

 

Posted Date: 2/14/2013 7:41:09 AM | Location : United States







Related Discussions:- Explain production possibility curve & competitive firm’s , Assignment Help, Ask Question on Explain production possibility curve & competitive firm’s , Get Answer, Expert's Help, Explain production possibility curve & competitive firm’s Discussions

Write discussion on Explain production possibility curve & competitive firm’s
Your posts are moderated
Related Questions
After two quarters of increasing levels of production, the CEO of Canadian Fabrication & Design was upset to learn that, during this time of expansion, productivity of the newly hi

DETERMINATION OF FACTOR PRICES BY SUPPLY AND DEMAND   Let us suppose that perfect competition prevails in the goods and the factor markets. In such a situation let us see how th

To analyze the effects of discrimination in labor markets, use supply and demand curves for labor, with the demand curves representing the value of the marginal product, show the e

Gas Guzzler Motors is one of three major auto producers. It is currently producing 6,000 cars a day, and selling them at a price of $10,000 each. Its marketing department tells it

Q. What is Demand for money? Demand for money The demand for money depends negatively on R and positively on the Yin the IS-LM model As fo


Your local newspaper reports the following: the owners of the New Orleans Sandwich Shop in Seattle, Washington, found that when they priced their hot dogs (reportedly the rolls-roy

How is the global social progress being measured today? Name some indicators of development progress that you believe reasonably reflect actual progress. What roles do corporate ci

The demand curve for product X is given by QXd = 340 - 4PX.\ a) How much consumer surplus do consumers receive when Px = $45? b) How much consumer surplus do consumers receiv

Explain the impact of Wal-Mart's supply chain management on its total product, marginal product, and average product curves. What has been the effect on its retail prices?