Chapter 11

Efficient Allocation of Resources

In this chapter we return to the study of the efficient allocation of resources, develop some criteria for efficient allocation, and compare them to some of the results of P-competitive equilibrium.

Begin the chapter

Here are a few overheads.

Check your understanding -- multiple-choice questions

You Need to Know

To understand this chapter, you will need concepts from these chapters: Material from chapters 5-10 should be helpful, but I have tried to make this chapter enough of a self-contained restatement that it can be understood -- with some effort -- without going through those details.

Contents

  1. Introduction
  2. Production Possibilities
  3. Maximum Net Benefit
  4. Cost
  5. Marginal Cost
  6. Benefits
  7. Revealed Preference
  8. Marginal Benefit
  9. An Optimal Plan
  10. The Fundamental Principle of Microeconomics
  11. Chapter Summary

Next Chapter: Monopoly

To the chapter listing