3 - competitive markets and perfect competition

Question 1

homogeneous

Answer 1

all the products are the same irrespective of who makes them

Question 2

allocative efficiency

Answer 2

the optimum allocation of scarce recourses that best accords with the consumers pattern of demand

Question 3

optimum output

Answer 3

the (optimum) combination of fixed and variable factors that minimizes ATC

Question 4

static efficiency

Answer 4

efficiency at a point in time-includes allocative and productive efficiency

Question 5

dynamic efficiency

Answer 5

efficiency over time-new products, techniques and processes which increases economic growth

Question 6

structural performance and conduct model

Answer 6

individual performance depends ultimately on the industry structure where the variables in the model are structure, conduct and performance