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What is economic efficiency? Why do economists define efficiency in this way?
economic efficiency is the situation when there is supply equal to demand and no excess capacity in the market. fully utilization of resources and minimum cost in the economy.
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Okay, so for the definition off economic efficiency, economic efficiency Glovis easy to see that show for the grow we held onto to hear price. Here we have a our soldiers demand career and operational abuse of biker. So based on the cross point off the man caresses biker, we have the marketing, colon crisis and market equivalent called too. Okay, so p stark used up. So basically economic efficiency achieves Abbas equivalent point. So why It is a kind of efficiency. It is because at this point, the quality man by the consumers Q. Stop And the quandary supplied by the center is also Houston. And also add this quantity this prize piece start. He's accepted by both consumers and sellers, so that is a win the marginal benefits. Often last unit accused Starr because a marginal cost Okay, we lost unit cu stuff. So when in this case, say that mocking it shoots economic efficiency, So why do economics by efficiency in this one? It is because the mark itself can achieve this equipment. So is a result of shoes by the market itself and to make both consumers and sellers accept this result when marginal benefit Because marginal cost off this lost units in the market of cheese, a cool room and you'll never change unless some other factors think was this market so customers or why economics used this kind of the nation to defy efficiency.
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