ECO100Y5 Lecture Notes - Price Ceiling, Allocative Efficiency, Marginal Revenue
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1. Produce given output with minimum input (produce at lowest cost)
2. Marginal Cost must be equal for all firms making industry more efficient
MC = P
(also efficient) Efficient Industry Efficient Industry etc…..
↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑
( if all industry’s in economy are efficient then economy will too be efficient)