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Use the Concepts of Productive and Allocative Efficiency to Explain

question 181

Essay

Use the concepts of productive and allocative efficiency to explain why perfectly competitive markets are efficient.


Definitions:

Equation

A statement in mathematics that declares two expressions, often including variables and constants, to be equivalent.

Factor

A number or expression that divides another number or expression evenly, with no remainder.

Zero-Factor Property

The rule stating if a product of two or more factors is zero, at least one of the factors must be zero.

Equation

A pronouncement in mathematics asserting the equivalence of two expressions.

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