What Is Allocative Efficiency?
I.e. When the cost of the last unit is exactly equal to the price consumers are willing to pay for it and so that the right goods are being sold to the right people at right place, what is the equilibrium point? I.e is it MC=MR, MC=AC, MC=AR or any other relation? Can you explain how?
1 Answer - Sort by: Date | Rating
Basically Allocative efficiency is the condition, in which the limited resources in an economy are allocated according to the desires of the consumers of the resources. In the case of the optimal mix of the commodities the situation is termed as Allocative efficiency. In the prefect market, the point for Allocative efficiency is where P = MC
Allocative efficiency
Allocative efficiency
1
0
- Select An Example Of An Industrial Buying Decision. List Out And Briefly Explain Five Similarities And Five Differences Between The Industrial Decision Process You Have Selected And The Consumer Decision Process?
- What Do You Think That Partnership Is Important?
- What Encoding Should Have Been Used To Assist Communication?
- How Much Are Old Toy Tops Going For?
- What Is The Product Of 76 896?
- What Are The Major Sources Of Bureaucratic Power In Texas?
- Would U View The Internet As A Luxury Or Necessity?
- In A Report What Does The Term Primary And Secondary Mean?
- How The Managers Skill Beneficial?
- If You Are To Set The IT Current Trends. What Do You Want To Set And Why?
- What Purposes Do Charts?
- What Is Fix Capital?
- How Are You Enjoying Your Studies?
- What Are The Three Types Of Skills Required For A Successful Manager?
- Who Do You Gather Information From A Weather Radar And A Weather Map?
- Where Is The Thief For Model Inc. Mission?
- List 10 Different Method Of Contraception,explain How They Work?
- How Many Doctors, Legal Professionals And Accounting Professionals Are In India?
- I Need To Know How Many Doctors, Legal Professionals And Accounting Professionals Are In India?
- What Is The Difference Between A Plagiarism Checker And Write Point?
- How Would Management Of A Company Get Affected If The Company Is Running Down And More Redundancies Are Happening?
- Marketing Plays A Key Role In A Company's Strategic Planning. Which Of The Following Does Marketing Provide?
- Marketing Plays A Key Role In A Company's Strategic Planning. Which Of The Following Does Marketing Provide? Guiding Philosophy Inputs Strategies All Of The Given Options
- What Are The Steps To Becoming A Business Manager?
- What Makes An Effective Executive?
- Difference Between Resource Allocative Efficiency And Productive Efficiency?
- What Is Difference Between Resource Allocative Efficiency And Productivity Efficiency?
- Can You Explain The Allocative Mechanism Of Market Economy?
- What You Can Get From The Term Efficiency?
- What Does Energy Efficiency Mean?
- How To Calculate Efficiency?
- What Is Operation Efficiency?
New Comment - Comments are editable for 5 min.