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 51 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
Great answer, keep it coming :)

vickybb89

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Free Samples Free Samples
This painting depicts New Orleans in 1803, when the city was acquired—along with much of the modern This painting depicts New Orleans in 1803, when the city was acquired—along with much of the modern
Are reality shows “real”? Does the media tell the “truth”? Are reality shows “real”? Does the media tell the “truth”?
How to solve any percent efficiency problem How to solve any percent efficiency problem
Growing Interest in Sugar-Free Foods and Beverages Growing Interest in Sugar-Free Foods and Beverages
I guess condoms don't exist then? I guess condoms don't exist then?
Video: Introduction to Epilepsy

For a complete list of videos, visit our video library