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Elodia [21]
2 years ago
13

From the viewpoint of economic efficiency, when competitive forces in an industry are weak, market allocation will often lead to

a. an output of the product that exceeds the amount consistent with ideal economic efficiency. b. an output of the product that is less than the amount consistent with ideal economic efficiency. c. an output of the product that equals the amount consistent with ideal economic efficiency. d. product prices that are below the cost of production.
Social Studies
2 answers:
ivann1987 [24]2 years ago
8 0

Answer:

B. an output of the product that is less than the amount consistent with ideal economic efficiency

Explanation:

Economics efficiency is the way in which resource are be allocated in an efficient and effective ways in order to avoid and reduce wastage of those resources.

Economic efficiency helps to ensure that the resources are been allocated in order to serve each individual in a great ways thereby reducing inefficiency.

Therefore when competitive forces in an industry are weak, market allocation will often lead an output of the product that is less than the amount consistent with ideal economic efficiency meaning weakness or failure in analysing the competition of a business or company can lead the market allocation to have an output of the products because they will be lesser than the amount consistent with ideal economic efficiency because any changes made to assist one entity would definitely affect another.

NeTakaya2 years ago
3 0

Answer: B. an output of the product that is less than the amount consistent with ideal economic efficiency

Explanation: Economic efficiency is the state in which all available resources are optimally allocated to serve each individual or entity in the best way while reducing to the minimum, waste and inefficiency. In reality, economic efficiency has shown that nothing can be improved without something else being hurt.

When competitive forces are weak, it leads to decrease in output as economic efficiency is only maximized when price is equal to marginal revenue because at this point both profit and efficiency are maximized.

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