(7) The Desirable Properties of the Long Run Competitive Equilibrium
Desirable Properties, Competitive Equilibrium, Long Run Equilibrium in Perfect Competition, Allocative Efficiency, Efficient Resource Allocation
This presents the graph of the Long Run Equilibrium Situation for Perfect Competition, the end result of the competitive adjustment process. It uses this graph to identify the collection of desirable properties associated with this outcome. It calls particular attention the the attribute of allocative efficiency.
Crane, Steven E., "(7) The Desirable Properties of the Long Run Competitive Equilibrium" (2011). Principles of Microeconomics. 36.
Ability to identify and explain the desirable properties of the Long Run Competitive Equilibrium. In particular, the ability to define "allocative efficiency" and explain how/why this occurs in the Long Run in Perfect Competition.
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