Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

The diagram illustrates the long-run equilibrium positions of two firms, X and Y. What can be deduced about the economic efficiency of these two firms?

  • Afirm X: allocative efficiency no, productive efficiency yes; firm Y: allocative efficiency yes, productive efficiency yes
  • Bfirm X: allocative efficiency yes, productive efficiency no; firm Y: allocative efficiency yes, productive efficiency yes
  • Cfirm X: allocative efficiency yes, productive efficiency yes; firm Y: allocative efficiency no, productive efficiency yes
  • Dfirm X: allocative efficiency yes, productive efficiency yes; firm Y: allocative efficiency yes, productive efficiency no

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