Economics 11: Allocative Efficiency by Robert Haag https://padlet.com/rhaag026/fos9qqoc0f7n Made with a lightning strike of genius en-us 2016-10-27 04:02:20 UTC 2024-07-15 19:45:36 UTC hello@padlet.com Thursday write: Using a diagram, explain allocative efficiency. rhaag026 https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133521327 2016-10-27 04:03:23 UTC https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133521327 Allocative efficiency https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133521464 xAllocative efficiency is the state of the economy where production represents consumer preferences, good are produced to the point where marginal benefit will equal to the marginal cost of producing. Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good and service and the total amount that they actually pay. Supplier surplus is a measure between the amount a producer of a good receives and the minimum amount the producer accepts for the good.  ]]> 2016-10-27 04:05:09 UTC https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133521464 Allocative efficiency is achieved when an economy is producing goods at the lowest possible cost along, with the 'right' goods. This concept occurs when the competitive market is at equilibrium, as the marginal social cost is equal to marginal social benefit. Marginal cost being  the cost added to produce more units of a product and marginal benefit being the consumers satisfaction.  https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133521494
Ex: At point A the quantity demanded for coffee at 3$ will be 3 million this is allocatively inefficient. If the marginal cost of the good was 3$ and the price was 7$]]> 2016-10-27 04:05:40 UTC https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133521494 Allocative Efficiency https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133521511 2016-10-27 04:05:57 UTC https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133521511 Put your groups best work here.  Refer to RUBRIC on the board. rhaag026 https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133521953 2016-10-27 04:13:39 UTC https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133521953 https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133522047 Allocative efficiency is one of the measures of economic efficiency used by economists, it is the point in the economy at which production represents consumer preferences and it is at an output level where the price of goods and services equals the marginal costs of production. This is because the price that consumers are willing to pay is equal to the marginal benefit they receive. Thus, allocative efficiency is only achieved the marginal benefit of the goods equals to the marginal costs. (MB = MC)
Marginal benefit refers back to the consumer satisfaction. It is the maximum amount that one is willing to pay to consume more of a good or a service. It tends to drop as more is consumed because satisfaction declines with extra consumption. (downwards slope on a curve) 
Marginal cost is the cost added by producing one extra product. As more is made, it tends to rise. (upwards slope on a curve) 
From the curve, allocative efficiency dictates whether a market is producing what consumers want. 

Mo, Omar, Karim, Yara
]]> 2016-10-27 04:15:07 UTC https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133522047 Graph https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133522281 Looking at the graph, if the marginal cost was 10, and people were only willing to pay 5 for it, this is called allocative inefficient. This is because the value people get, which is 2, is less than the cost of producing. The cost is greater than the benefit, therefore, it is inefficient. ]]> 2016-10-27 04:19:17 UTC https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133522281 Allocative efficiency  https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133522337 It is the point in the economy where all consumer preferences are met, where consumers and suppliers are both happy. Marginal benefit refers to consumer satisfaction; the maximum amount that one is willing to pay for a good or a service. It tends to drop as more is consumed because satisfaction decreases with extra consumption. For example, consuming a first bag of chips is very satisfying, but the second bag would feel less satisfying.Marginal cost is the cost added by producing more of a product. It rises as more is made. 
At the point where MB = MC, that is when the market is at an equilibrium and has achieved allocative efficiency. Consumers' needs/wants are fulfilled, and suppliers are content with the amount of costs they are spending. 
- Nadine 

]]> 2016-10-27 04:20:07 UTC https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133522337 Allocative Efficiency in Competitive Markets https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133522655 Omar, Mo, Karim, Yara, Nadine]]> 2016-10-27 04:24:20 UTC https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133522655 Allocative Efficiency https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133522943 Allocative efficiency is one of the measures of economic efficiency. As shown in the graph, when the market is in equilibrium, with no extend disturbances, it is laid to be in a state of allocative efficiency. Allocative efficiency is achieved with the society produces enough of a good so that MB=MC. Allocative efficiency represents consumer preferences. For example,  If the majority of the consumers demand red car and a few demand blue cars, companies will produce red cars to meet that need. Thus, we could conclude that companies do their best to satisfy the majority of the consumers by producing the highly demanded products.]]> 2016-10-27 04:29:10 UTC https://padlet.com/rhaag026/fos9qqoc0f7n/wish/133522943 Allocative Efficiebcy  https://padlet.com/rhaag026/fos9qqoc0f7n/wish/135158231 2016-11-03 16:52:39 UTC https://padlet.com/rhaag026/fos9qqoc0f7n/wish/135158231 Allocative Efficiency  https://padlet.com/rhaag026/fos9qqoc0f7n/wish/135159372 By : Adam Abudiab
It occurs when the marginal benefit is equal to the marginal cost. This the equilibrium of both slopes which indicates that the business is using all it resources to meet the needs and wants of their consumer. This makes them more successful within their market and owns a significant amount of the market share. Having allocative Efficiency proves that the business has set the most suitable price, while also being able to offer satisfaction from consuming that good or service.

In this graph, it shows that the price is at ten but the quantity demanded is five. On the other hand, when the price decreases to five, the quantity demanded increases. The point where marginal cost (MC) and marginal demanded (MU) meet, is considered allocative efficiency. ]]> 2016-11-03 16:55:36 UTC https://padlet.com/rhaag026/fos9qqoc0f7n/wish/135159372