THEME 3 Flashcards
definitions
1
Q
Allocative efficiency
A
When resources are allocated to the best interests of society, when there is max social welfare and maximum utility; P=MC
2
Q
Asymmetric Info
A
Where one party has more info than the other, leading to market failure and causing problems for regulators
3
Q
Biliteral Monopoly
A
Where there is one buyer and one seller in the market
4
Q
Cartels
A
A formal collusive agreement where firms enter into an agreement to mutually set prices
5
Q
Collusion
A
Occurs when firms agree to work together
6
Q
Competition Policy
A
Gov action to increase competition in market
7
Q
Competitive tendering
A
when the gov contracts out the provision of a good or service and invites firms to bid for the contract
8
Q
A
9
Q
A
10
Q
A
