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Allocative efficiency is an output level where the price equals the marginal cost of production. This is because the price that consumers are willing to pay is equivalent to the marginal utility that they get. Therefore the optimal distribution is achieved when the marginal utility of the good equals the marginal cost.
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Which of the following statements are true about productive and allocative efficiency society can achieve either productive efficiency or allocative efficiency but not simultaneously?
society can achieve either productive efficiency or allocative efficiency, but not both simultaneously
To realize full production a society must achieve what?
Both allocative and productive efficiency
What is the difference between allocative and technical efficiency?
no difference
How can one determine how to find allocative efficiency in a market?
Allocative efficiency in a market can be determined by comparing the price of a good or service with the marginal cost of producing it. When the price equals the marginal cost, allocative efficiency is achieved. This means that resources are allocated in a way that maximizes overall societal welfare.
What does the term 'allocative efficiency' refer to?
Allocative efficiency is the concept in economics where manufacturers and service providers only produce those goods and services which are in high demand and the most desirable to the consumer.
Which of the following statements are true about productive and allocative efficiency society can achieve either productive efficiency or allocative efficiency but not simultaneously?
society can achieve either productive efficiency or allocative efficiency, but not both simultaneously
To realize full production a society must achieve what?
Both allocative and productive efficiency
What is the difference between allocative and technical efficiency?
no difference
How can one determine how to find allocative efficiency in a market?
Allocative efficiency in a market can be determined by comparing the price of a good or service with the marginal cost of producing it. When the price equals the marginal cost, allocative efficiency is achieved. This means that resources are allocated in a way that maximizes overall societal welfare.
What does the term 'allocative efficiency' refer to?
Allocative efficiency is the concept in economics where manufacturers and service providers only produce those goods and services which are in high demand and the most desirable to the consumer.
What are the techniques of economic efficiency in health care?
allocative efficancy productive efficancy
What is allocative efficiency and productive efficiency?
Allocative and productive efficiencies are theoretical concepts in economics. Allocative efficiency is achieved in an economy when the distribution or apportionment of resources produces the greatest utility for consumers through its combination of products. For example, and for the sake of simplicity, envision an economy with two products: pizza and robots. In an allocatively-efficient economy, businesses are producing the right amount of each product to make consumers happy. Productive efficiency, on the other hand, is when an economy is using all of its resources efficiently, producing the greatest output for the smallest input. Productive efficiency, on a production possibility frontier, occurs on any points along the curve.
What is allocative policy?
Allocative policy refers to government strategies and decisions that determine how resources are distributed across different sectors of the economy. This type of policy aims to optimize resource allocation to achieve specific social or economic outcomes, such as improving public welfare or addressing market failures. It often involves investments in public goods, services, and infrastructure to meet the needs of society. Ultimately, allocative policy seeks to enhance overall economic efficiency and equity.
How government regulate a monopoly in order to achieve allocative efficiency?
Governments regulate monopolies to achieve allocative efficiency by implementing price controls, such as setting a price ceiling that reflects the marginal cost of production. They may also encourage competition through antitrust laws, breaking up monopolies or preventing anti-competitive practices. Additionally, regulators can impose service quality standards to ensure that monopolies meet consumer needs while balancing profit motives. These measures help ensure that resources are allocated more efficiently and that consumer welfare is prioritized.
What is allocative efficiency?
It is the particular mix of goods and service most highly valued by society (minimum-cost production assumed).
What is meant by an efficient market equilibrium?
When there is allocative and productive efficiency, there is an efficient market equilibrium, allocative efficiency is when the products that are most wanted are produced, this is achieved when price equals marginal cost, productive efficiency is achieved when the firm is producing on the lowest point on the lowest average cost curve, this is also called the point of technical efficiency, both allocative and productive efficiency lead to an optimum allocation of resources and economic efficiency is achieved, though, this is thought to exist only in a perfectly competitive market and is lacking in other markets because monopolies and oligopolies usually have their prices above marginal cost and that is not an efficient allocation of resources and because other markets may lack the incentive to produce at the lowest cost
What has the author Jan K Bueckner written?
Jan K. Bueckner has written: 'Public intermediate inputs, property value, and allocative efficiency'
