ConceptConceptDocsDocuments

Pearson Edexcel IAL Economics 3.3.3.3d Productive & allocative efficienc

Practise linking competitive market outcomes to productive and allocative efficiency, normal profit and long-run equilibrium conditions.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
A2

Exam points

  • interpret a table to match long-run competitive equilibrium with normal profit and efficiency
  • distinguish allocative efficiency from supernormal profit in a perfectly competitive firm

3.3.3.3d - Productive and allocative efficiency in the short run and long run question 1

[Maximum number: 1]

Which one of the following combinations best describes a profit-maximising firm operating in a monopolistically competitive market in the long-run?

Efficiency

Profit

Productively inefficient

Normal profit

Productively efficient

Supernormal profit

Allocatively inefficient

Supernormal profit

Allocatively efficient

Normal profit

All question bank results loaded