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Answer to Question #68220 in Microeconomics for navneet kaur
Question #68220
what sructure is used to benchmark allocative efficiency and why do we use it? Illustrate and explain using diagram.
Expert's answer
Usually such market structure as perfect competition is used to benchmark allocative efficiency, because all firms are price-takers and can't influence the market, so in equilibrium there is no deadweight loss.
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