Title
(7) The Desirable Properties of the Long Run Competitive Equilibrium
Topic Category
Perfect Competition
Publication Date
2011
Keywords
Desirable Properties, Competitive Equilibrium, Long Run Equilibrium in Perfect Competition, Allocative Efficiency, Efficient Resource Allocation
Abstract
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.
Recommended Citation
Crane, Steven E., "(7) The Desirable Properties of the Long Run Competitive Equilibrium" (2011). Principles of Microeconomics. Paper 36.
http://epublications.marquette.edu/microecon_learning/36
Run Time
2:20
Primary Discipline
Microeconomics
Skills Delivered
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.
Rigor Level
2000
Prerequisites
Previous Perfect Competition and Short Run Cost Videos