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Answer to Question #195005 in Macroeconomics for addy

Question #195005

how to know whether a market (perfect/ monopoly/ oligopoly/ monopolistic) is allocative efficient/ productive efficient or not?


1
Expert's answer
2021-05-19T20:24:20-0400

Perfectly competitive markets achieve allocative efficiency because the optimal amount of the good is produced and this amount is rationed/allocated to the highest-valued users (those who would pay the price for the good).


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