<p>Can someone tell me all the different “efficiencies” on a Monopoly graph and how to find them? Like Allocative/Productive etc.</p>
<p>i know that allocative efficiency is when Price equals the Marginal Cost, and…Pareto efficiency is when there’s no DWL that’s all i got lol.</p>
<p>copied from 5 steps to a 5</p>
<p>"Productive efficiency: The economy is producing the maximum output for a given
level of technology and resources. All points on the production frontier are productively
efficient.</p>
<p>Allocative efficiency: The economy is producing the optimal mix of goods and services.
By optimal, we mean that it is the combination of goods and services that provides the
most net benefit to society. If society is allocatively efficient, it is operating at the best
point on the frontier.</p>
<p>How do we determine which point is the optimal point? Remember how I determined
the optimal number of sodas to consume every day? Suppose we could measure,
society-wide, the marginal benefit received from the consumption of pizza crusts. Like
my MB for sodas, the societal MB for crusts is falling as more crusts are consumed. We
already know that the marginal cost of producing pizza crust increases. The marginal
cost of producing and marginal benefit of consuming more pizza crusts are illustrated
in Figure 1.5.</p>
<p>MB>MC, consume
MB=MC, stop here
MB<MC, do not consume</p>
<p>The allocatively efficient amount of pizza crusts is Q*, the quantity where the MB
of the next crust is exactly equal to the MC of producing it. If we produce anything
beyond this point, we have created a situation where the MC of producing it exceeds
our marginal enjoyment of it. Clearly we should devote those resources to other goods
that we desire to a greater degree, and that are produced at a lower marginal cost."</p>