Competitive markets usually do a remarkable job of allocating society’s scarce resources to their highest-valued uses. There are two conditions that must hold for a competitive market to produce efficient outcomes namely the market demand and market supply.

Required: Based on your perspective analyze the reason economists say competitive markets are efficient and inefficient by using the ideas of consumer surplus and producer surplus

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1 Introduction The development of any economy depends upon the efficient utilization of scare resour... View the full answer