This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: consumers (societys) total satisfaction is maximized. It is said that Allocative Efficiency is achieved at this point. Imperfect competition produces too little to be allocatively efficient, in both short and long run. Perfect competition achieves allocative efficiency, in both short and long run. 3 . Productive (Technical) Efficiency Technical efficiency occurs when resource are being used in their most economical way. Taking all resources into account, technical efficiency is achieved at min. ATC; this frees up the maximum possible resources for other uses. Short run: Neither perfect nor imperfect competition necessarily achieves technical efficiency. 2 Long run: Perfect competition is technically efficient because P = min ATC. Imperfect competition is NOT technically efficient because P > min ATC for all 3 market structures....
View Full Document
This note was uploaded on 10/26/2009 for the course ECON 180-004-20 taught by Professor Bresnock during the Fall '09 term at UCLA.
- Fall '09
- Perfect Competition