Examlex
Which muscle is under voluntary control?
Productive Inefficiency
A situation where resources are not used in the most cost-effective way, resulting in a higher production cost than necessary.
Allocative Inefficiency
A situation where resources are not allocated efficiently, leading to a mismatch between what is produced and what consumers actually demand, causing wastage and loss of potential welfare.
Monopolistically Competitive
Refers to a market structure where many firms sell products or services that are similar but not perfect substitutes, with some ability to set prices.
Excess Capacity
The situation in which a firm or economy can produce more goods than are currently being produced, due to underused resources.
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