This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A free-market economy with perfect allocative efficiency does not exist in reality. Why? (Read 69 times)

booty5

  • Full Member
  • ***
  • Posts: 146
on: Oct 12, 2022
A free-market economy with perfect allocative efficiency does not exist in reality. Why?
◦ The assumption of utility maximization is not a realistic assumption about the behaviour of consumers.
◦ Government intervention in the economy prevents the economic forces that would eventually bring the market to an allocatively efficient outcome.
◦ The decentralization of economic power in a free-market economy does not allow for allocative efficiency.
◦ Firms in many industries have some degree of market power and face negatively sloped demand curves, and produce a level of output where P > MC.
◦ The assumption of profit-maximization is not a realistic assumption about the behaviour of firms.
Microeconomics ¦ Ragan ¦ 17th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by booty5 on Oct 12, 2022

fowlerhop@rocketmail.com

  • Full Member
  • ***
  • Posts: 139
Reply #1 on: Oct 12, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


booty5

  • Member
  • Posts: 146
Reply 2 on: Oct 12, 2022
Excellent

TheNamesImani

  • Member
  • Posts: 334
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it. In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
In this cartoon, Boss Tweed welcomes cholera—a skeletal figure of death carrying a handbag from “Asi In this cartoon, Boss Tweed welcomes cholera—a skeletal figure of death carrying a handbag from “Asi
Virtual reality exposure therapy Virtual reality exposure therapy
A free-running circadian sleep–wake cycle 25.3 hours in duration. Despite living in an unchanging ... A free-running circadian sleep–wake cycle 25.3 hours in duration. Despite living in an unchanging ...
A Tough Economy ...for students A Tough Economy ...for students
Contributions to the free energy of folding of globular proteins Contributions to the free energy of folding of globular proteins
Video: Tuberculosis Testing

For a complete list of videos, visit our video library