Question: Do competitive markets use resources efficiently? Explain why or why not.

Do competitive markets use resources efficiently? Explain why or why not.

Step by Step Solution

★★★★★

3.62 Rating (177 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

In the absence of the obstacles mentioned earlier in t... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

684-B-E-E-P (467).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

Markets usually allocate resources in a manner that creates the greatest net benefit to society. An efficient allocation is one that maximizes the net benefits to society. Indicate whether each of...

Q:

Explain why the price in competitive markets settles down at the equilibrium intersection of supply and demand. Explain what happens if the market price starts out too high or too low.

Q:

A: Consider the special 2-good case where consumer 1 views the goods x1 and x2 as perfect complements with utility equal to the lower of the quantities of x1 and x2 in her basket. Consumer 2, on the...

Q:

1 Do competitive markets use resources efficiently? Explain why or why not. When a market is inefficient, can one of the alternative non-market methods that we described at the beginning of this...

Q:

1.What is consumer surplus? How is it measured? 2. Do competitive markets use resources efficiently? Explain why or why not

Q:

Question 2 (6 marks) Explain whether or not competitive markets use resources efficiently. Make use of a diagram in your

Q:

True, false, or uncertain? Perfectly competitive markets allocate resources efficiently. Explain your answer

Q:

1. If the marginal benefit of a pizza exceeds themarginal cost of a pizza are we producing too much pizza and too little of other goods and services, or are we producing too little pizza and too much...

Q:

Which of the statements is/are FALSE? Group of answer choices a. in the short-run, at competitive equilibrium, the total surplus is maximized. b. in the long-run, at competitive equilibrium, the...

Q:

Anastasia's Gold Mines, a single-price monopoly, faces the demand schedule shown in the first table above and has the cost schedule shown in the second table above. a) Calculate Anastasia's marginal...

Q:

Construct Hot Airs total revenue and marginal revenue schedules. Hot Air Balloon Rides is a single-price monopoly. Columns 1 and 2 of the table set out the market demand schedule and columns 2 and 3...

Q:

d. If nine directors were to be elected, and Ms. Ramsey and her friends had 79,001 shares and Mr. Clark had 59,001 shares plus half the uncommitted votes, how many directors could Mr. Clark elect?...

Q:

3. The IRS makes available several publications that can prove useful to those involved in the administration of estates. Retrieve and summarize the following documents. a. Publication 559. b....

Q:

2 Describe the types of distribution channel and the steps in planning distribution channel strategies

Q:

If the residents of the town own the lake, what is the quantity of pesticide produced and how much do residents of the town charge the factories to dump waste? When factories produce pesticide, they...

Q:

If the residents of the town own the lake, what is the quantity of pesticide produced and how much do residents of the town charge the factories to dump waste? When factories produce pesticide, they...

Q:

If the pesticide factories own the lake, how much pesticide is produced? When factories produce pesticide, they also create waste, which they dump into a lake on the outskirts of the town. The...

Q:

Find the present value of $500 due in 3 years at a discount rate of 6%. $595.51 $470.00 $590.00 $419.81 $1,500.00 Find the present value of $500 due in 3 years at a discount rate of 6%. $595.51...

Q:

In the below picture how does he get fromLog 10 Q 100 =3.4893 to Q 100 = 3085m 3 /s When I use e 3.4893 I get a different answer. m =2.2 and s = 0.480 (To be used in part b) log on = 2.2+ K ) 0.480...

Q:

Petty Corporation forecasts a negative free cash flow for the coming year, with FCF1=$10 million, but it expects positive numbers thereafter, with FCF2=$31 million. After Year 2. FCF is expected to...