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    i'm getting confused with when market structures are allocatively and productively efficient. e.g. is short run perfect competition either? and long run perfect competition? any help much appreciated x
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    (Original post by jazzyj)
    i'm getting confused with when market structures are allocatively and productively efficient. e.g. is short run perfect competition either? and long run perfect competition? any help much appreciated x
    Perfect competition tends to be highly efficient where as a monopoly tends to inefficient
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    (Original post by jazzyj)
    i'm getting confused with when market structures are allocatively and productively efficient. e.g. is short run perfect competition either? and long run perfect competition? any help much appreciated x
    perfect competition is allocately and productively efficent as if the firm produces at a higher cost that its rivals or produces something the people dont want it will loose all its customers, as it is assumed everyone has perfect knowledge
    in a monopoly the firm produces at watever price it wants as it knows no matter what the price the people will still buy... but it has to be more or less alocatively efficient so as to produce what the people want
    in a oligopoly the firms can be alocately and productively efficent depending on the situation. if the firms form a cartel then it is unlikely that they are productively efficient, if they are rivals competing then they should be productively efficient.

    considering everything all the firms should be allocatively efficient to a certain extent because if you dont produce what people want then they wont buy it!
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    yeh i agree generally...but i was referring to allocative efficiency as in producing at lowest average cost and produtive efficiency as in price equals marginal cost

    thanks for your help tho! x
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    (Original post by jazzyj)
    yeh i agree generally...but i was referring to allocative efficiency as in producing at lowest average cost and produtive efficiency as in price equals marginal cost

    thanks for your help tho! x
    ?? But allocative efficieny is using resources to produce what consumers want, it has nothing to do with producing at lowest average costs, because that's productive? I'm confuuuuuused!
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    I was wondering if any1 could explain the relation ship between these 3, if 1 increases what happens to the other.... :cool:
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    (Original post by jazzyj)
    yeh i agree generally...but i was referring to allocative efficiency as in producing at lowest average cost and produtive efficiency as in price equals marginal cost

    thanks for your help tho! x
    productive efficiency is producing at lowest average cost
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    (Original post by Ellie4)
    ?? But allocative efficieny is using resources to produce what consumers want, it has nothing to do with producing at lowest average costs, because that's productive? I'm confuuuuuused!
    Dont be confused you are right. I think jazzy should be the one who is confused
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    (Original post by Economist)
    Dont be confused you are right. I think jazzy should be the one who is confused
    Ah ok thankyou Too much macro today has fried my brain.
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    (Original post by Ellie4)
    Ah ok thankyou Too much macro today has fried my brain.
    Lol ive got loads of macro to do tomorrow :rolleyes:
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    (Original post by Economist)
    Lol ive got loads of macro to do tomorrow :rolleyes:
    I've got loads... left. Which exam board you with? AS or A2?
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    (Original post by Ellie4)
    I've got loads... left. Which exam board you with? AS or A2?
    OCR AS. I still need to learn international transactions for macro which I think our teacher forgot to teach us :confused:
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    (Original post by Economist)
    OCR AS. I still need to learn international transactions for macro which I think my teacher forgot to teach us :confused:
    Oh dear :eek: Well, best of luck, I've got lovely Edexcel AS, the king of all exam boards :rolleyes:
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    (Original post by Ellie4)
    Oh dear :eek: Well, best of luck, I've got lovely Edexcel AS, the king of all exam boards :rolleyes:
    Ahh ive got physics on monday which is edexcel which means ive got 6 hours of exams in one day
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    (Original post by Economist)
    Ahh ive got physics on monday which is edexcel which means ive got 6 hours of exams in one day
    :eek: :eek: Oh that's horrible. Is monday your last day at least?
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    (Original post by Ellie4)
    :eek: :eek: Oh that's horrible. Is monday your last day at least?
    Noooo :mad: Ive got 1 more maths next wednesday
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    (Original post by Economist)
    Noooo :mad: Ive got 1 more maths next wednesday
    Oh deary me! They'll be over soon enough, don't you worry!
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    Quote:
    Originally Posted by Economist
    Ahh ive got physics on monday which is edexcel which means ive got 6 hours of exams in one day


    Oh that's horrible. Is monday your last day at least?
    Got 6 as well, 3 for economics and 3 for physics. Dam edexcel, cant schedule their exams properly.
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    (Original post by Ellie4)
    Oh deary me! They'll be over soon enough, don't you worry!
    Yea but im not too confident about physics
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    (Original post by Economist)
    Ahh ive got physics on monday which is edexcel which means ive got 6 hours of exams in one day
    Haha! (Me too )
 
 
 

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