Economic Efficiency - Allocative Efficiency I A Level and IB Economics

The concept of allocative efficiency is explored in this video.
Allocative efficiency is reached when no one can be made better off without making someone else worse off. This is known as Pareto efficiency / optimality. Allocative efficiency occurs when the value that consumers place on a good or service (reflected in the price they are willing and able to pay) equals the marginal cost of the scarce factor resources used up in production. The main condition required for allocative efficiency in a market is that market price = marginal cost of supply
#aqaeconomics #ibeconomics #edexceleconomics #economicsexplained #economics

[@tutor2u-official]

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[@neringaramanauske]

At 06:30 the graph of the monopoly is incorrect as AR and MR curves meet at one point on Y axis - not anywhere else.

[@yun1666]

Isn't in tha market supply curve=average cost?

[@tutor2u-official]

No the market supply curve is the horizontal sum of the marginal cost curves of firms in a market