Different market structures and their efficiencies- Economics Edexcel

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mathsnerd49
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I know that for good comparisons for market structures you should use their different efficiencies but I don't really understand how you apply them to each market type- how do you know if a monopoly produces at a productively efficient point versus an allocatively efficient point etc?
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BOBMABENA
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The allocatively efficient point is where AR=MC, so to judge if a Firm has achieved allocative efficiency you must see if it produces at this point. The Productively efficient point is where MC=AC. A profit maximising monopoly is neither of these, however monopolies have a lot of abnormal profit which they may use for research and development, making them more dynamically efficient. The only market structure that is both allocatively and productively efficient is perfect competition in the long run.
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