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Efficiency is about how a market system makes optimal use of scarce resources to satisfy the buyer’s wants and needs. The two main types of efficiency to learn are Productive Efficiency and Allocative Efficiency. Depending on the type of market structure and the timeframe (short run vs long run), the two types of efficiency may or may not exist. For example, perfect competition might not be productively efficient in the short run, but is both allocative and productively efficient in the long run due to a large number of firms entering into the market.
Market Efficiency Revision Notes
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Market Efficiency MC Questions with answers (GCE A-Level)
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