Perfect Competition amp Allocative Efficiency A Level and IB Economics

>> YOUR LINK HERE: ___ http://youtube.com/watch?v=FW45D2akZfg

This short video explains how to build a chain of reasoning to help explain how a firm operating in perfect competition will arrive at an equilibrium price and output that achieves allocative efficiency. • Allocative efficiency is a state when the market equilibrium is at a price that represents consumer preferences; in particular, every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of supply. Happens in a perfectly competitive market (MPB=MPC). • #aqaeconomics #ibeconomics #edexceleconomics

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