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Why does producing where P = MC indicate allocative efficiency? Why does producing at the minimum of ATC indicate productive efficiency? Using the notion of
- Why does producing where P = MC indicate allocative efficiency?
- Why does producing at the minimum of ATC indicate productive efficiency?
- Using the notion of total surplus, explain why perfectly competitive firms are efficient by monopolies are not.Be sure to draw graphs to explain your answer.
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Consumer Behaviour
Authors: Evans, Martin Evans
2nd Edition
0470994657, 9780470994658
