Microeconomics AS 0.0 / 5 ? EconomicsCompetitive marketsASAQA Created by: fatima.baigCreated on: 23-12-17 19:14 Allocative Efficiency when the available economic resources are used to produce the combination of goods and services that best matches people's tastes and preferences 1 of 5 Allocative function of prices changing relative prices allocate scarce resources away from markets exhibiting excess supply and into markets in which there is excess demand 2 of 5 Artifical barrier to entry a barrier to market entry which is man-made 3 of 5 average cost total cost of production divided by output 4 of 5 average revenue total revenue divided by output (=price in a single product firm) 5 of 5
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