Allocative Efficiency Condition
Tags: #Economics #MicroeconomicsEquation
$$P = MC \\ \text{Marginal Social Benefit (MSB)} = \text{Marginal Social Cost (MSC)}$$Latex Code
P = MC \\
\text{Marginal Social Benefit (MSB)} = \text{Marginal Social Cost (MSC)}
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Introduction
Equation
Latex Code
P = MC \\
\text{Marginal Social Benefit (MSB)} = \text{Marginal Social Cost (MSC)}
Explanation
Latex code for the Allocative Efficiency Condition. I will briefly introduce the notations in this formulation. Allocative efficiency occurs when consumer demand is completely met by supply. In other words, businesses are providing the exact supply that consumers want.
: Marginal Social Benefit
: Marginal Social Cost
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