Efficiency in perfect competition (HL only)

IB Economics: Efficiency in perfect competition (HL only)

This page focuses on the concepts of productive and allocative efficiency and looks at why firms in perfect competition will be both productive and allocatively efficient in the long run. Productive efficiency is no longer part of the new syllabus but allocative efficiency remains.Why will firms in perfect competition achieve allocative efficiency in both the short run and the long run. Lesson time: 85 minutes

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