Is a perfectly competitive market an efficient mechanism


Q1 (A) Is a "perfectly competitive market" an efficient mechanism for the allocation of scarce resources? When it is, explain why. When it is not, document reasons for either inefficient or undesirable outcomes.

(B) Describe a real-world situation in which your answer to (A) could have been used to achieve either a more efficient or more desirable outcome for the relevant stakeholders.

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Managerial Economics: Is a perfectly competitive market an efficient mechanism
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