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Allocative efficiency

Allocative efficiency is a state of the economy in which production is aligned with the preferences of consumers and producers; in particular, the set of outputs is chosen so as to maximize the social welfare of society. This is achieved if every produced good or service has a marginal benefit equal to or greater than the marginal cost of production.

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Description

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Allocative efficiency

Nodes23
Edges22
Triples12
Avg. degree1.91
Density0.086957
Components1

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Allocative efficiency

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related to References · 9
Allocative efficiency → Accessed April, Economics, Greg Shaffer, Inderst, Intermediate-Goods Markets, Market Power, Price Discrimination, Roman, The RAND Journal
is a · 2
Allocative efficiency → main tool of welfare analysis to measure the impact of markets and public policy upon society and subgroups being made better or worse off.It is possible to have Pareto efficien…, state of the economy in which production is aligned with the preferences of consumers and producers
related to Description · 1
Allocative efficiency → In

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Important terminology

efficiency allocative marginal market allocation cost price society benefit production social resources efficient output also optimal utility welfare achieved good

Entity relationships Subject–Predicate–Object triples

SubjectPredicateObjectConfidenceSrc
Allocative efficiencyis astate of the economy in which production is aligned with the preferences of consumers and producers0.90text
Allocative efficiencyis amain tool of welfare analysis to measure the impact of markets and public policy upon society and subgroups being made better or worse off.It is possible to have Pareto efficien…0.90text
Allocative efficiencyrelated to DescriptionIn0.60section
Allocative efficiencyrelated to ReferencesInderst0.60section
Allocative efficiencyrelated to ReferencesRoman0.60section
Allocative efficiencyrelated to ReferencesGreg Shaffer0.60section
Allocative efficiencyrelated to ReferencesMarket Power0.60section
Allocative efficiencyrelated to ReferencesPrice Discrimination0.60section
Allocative efficiencyrelated to ReferencesIntermediate-Goods Markets0.60section
Allocative efficiencyrelated to ReferencesThe RAND Journal0.60section
Allocative efficiencyrelated to ReferencesEconomics0.60section
Allocative efficiencyrelated to ReferencesAccessed April0.60section

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