True/False and explain why. A socially desirable Pareto Efficiency allocation cannot be attained in a competitive market.
Answer: false statement.
Pareto efficiency is achieved under the perfectly competitive market provided there is no externalities. Externalities might make system inefficient.
P=MC is the Pareto competitive market condition.
True/False and explain why. A socially desirable Pareto Efficiency allocation cannot be attained in a competitive...
Question 1 10 points Save Analytical Reasoning 1 Make your judgment, and explain why the statement is true false or uncertain. You're going to lose most points if there is no explanation. (Hint: please concentrate on the basic concepts to presenting your arguments, you are evaluated based on the substance of your concepts but not how long you can write) 1. (10pts) A socially desirable Pareto Efficiency allocation cannot be attained in a competitive market.
True, false, or uncertain: technical efficiency leads to allocative efficiency. Please explain why and include the definition of technical efficiency and allocative efficiency in the answer
Evaluate whether the statement is true or false. Explain why. a. Every point on production possibility frontier (PPF) is Pareto efficient. b. Every Pareto efficient allocation is represented as a point on a utility possibility frontier (UPF). c. If outcome is chosen by Rawlsian social welfare function, sum of utilities will be maximized. d. In pure exchange, the outcome where one consumer has everything is not Pareto efficient.
4) Explain why the following statements are either true or false: A: In a competitive labor market, a minimum wage above the market equilibrium will reduce the level of employment. B: In a monopsony labor market, a minimum wage set above equilibrium will always reduce the level of employment. C: In bilateral monopoly labor markets the monopsony employer and the union bargain to an outcome that is closer to a competitive equilibrium. D: If two industries...
4) Explain why the following statements are either true or false: A: In a competitive labor market, a minimum wage above the market equilibrium will reduce the level of employment. B: In a monopsony labor market, a minimum wage set above equilibrium will always reduce the level of employment. C: In bilateral monopoly labor markets the monopsony employer and the union bargain to an outcome that is closer to a competitive equilibrium. D: If two industries have identical labor supplies...
Explain why the equilibrium price and quantity is Pareto efficient. As part of your explanation, you must explain what is Pareto efficiency and show that it fits this definition. Pareto efficiency refers to a market equilibrium that is perfectly competitive. A market is considered Pareto efficient where any change to the price from its equilibrium level would cause in a reduction of the total surplus (area shaded in blue). Thus, any reduction in the total surplus would cause a change...
True False-Ambiguous and Explain why 2. Carino's, Axe Company operates in a monopolistically competitive market and, like most firms in the industry, has been earning an above-normal profit. Therefore, it is likely to increase its price in the future. Draw a graph.
3-1 Competitive Markets 1. True or False (Why): In a competitive market, buyers and sellers have significant market power..
TRUE OR FALSE WITH EXPLANATION!!! A Nash equilibrium is necessarily a dominant strategy equilibrium. A competitive equilibrium is not necessarily Pareto efficient. In a world with two goods and constant product prices, an increase in a country’s endowment of one factor of production with the other factor unchanged results in an increase in the output of the good that uses the increasing factor intensively. A Pareto efficient allocation is attainable in the presence of externalities.
[4] Explain why it would not be desirable (from the point of view of economic efficiency) to eliminate all emissions of sulfur dioxide from electric power plants. Now suggest a setting in which zero pollution might be efficient