8b - PURE COMPETITION - LONG RUN EQUILIBRIUM AND EFFICIENCY From Short-run to Long-run in Perfectly Competitive Markets (econclassroom.com 21:23) Review:
Long Run Equilibrium A normal profit (zero economic profits) is what we would expect individual firms in a perfectly competitive market to earn in the long run because there are no barriers to entry. Why do perfectly competitive firms only earn a normal profit in the long run?
8b - Allocative and Productive Efficiency in Perfectly
Competitive Markets (econclassroom.com 19:35) Introduction
Review
How Perfectly Competitve Marlkets achieve Productive Efficiency in the long Run
How Perfectly Competitve Markets achieve Allocativetive Efficiency in the long Run
Perfectly competitive firms achieve both productive and allocative efficiency in long run equilibrium
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