Define economic efficiency in terms of production costs and product prices. Okay by are purely competitive industries economically and efficient and monopoly industries are not efficient?
Define economic efficiency in terms of production costs and product prices. Okay by are purely competitive industries economically and efficient and
When every scarce resource in an economy is used and divided among producers and consumers to maximize economic output and benefit consumers, the economy is said to be efficient.
When every economic benefit is efficiently allocated across production and consumption, no modification to the arrangement can make anyone better off without making someone else worse off. This is known as Pareto efficiency.
Economic efficiency refers to a condition in which all resources are adequately distributed to serve each individual or institution best while minimizing waste and inefficiency. Any modifications made to aid one entity would harm another when an economy is economically efficient. In terms of production, goods and variable inputs are produced at the lowest possible cost.
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