Week 8 HW
When allocation efficiency MC = MU =P , this guarantees at the margin, resources are
dedicated to their highest value.
Then productivity efficiency is achieved in perfectly competitive markets in the long run
CHRISTINE KRIKORIAN WEEK 8 HW
1. Allocative efficiency is achieved under these conditions, ie MC=P=MU
2. In order to have efficient allocation of resources in the long run we need to have
the ability for new firms to enter the market so that supply contin
Discussion questions on Economic Efficiency
1) What condition of competitive equilibrium in markets implies that resources are being devoted to
their highest valued uses?
All resources will be devoted to their highest valued activity wh
Glen Kwasny 10/13/2016
Answer all 4 questions below for this week. Q2 will carry 4 points, other 3 Qs with 2 points each.
1) Read the WSJ article on the attempted monopolization of the plastic clothes hanger market
in this week's notes. Why
49.201: WK7A Review Questions: Suggested Answers (not limited to) in Blue
Discussion questions on Monopolistic Competition & on Price Discrimination
1) Agree or disagree and explain your answer. The typical firm in a monopolistic