Competitive markets GapFill

Economists talk of different types of efficiency. A firm is said to  be   elasticallyallocativelyproductivelycrossly efficient when production and consumer preferences are in equilibrium. Alternatively, a firm is described as   crosslyelasticallyallocativelyproductively efficient when it is producing at the lowest point on the   long-run averageaverage fixedmarginalshort-run average cost curve.

When a firm doesn’t have an incentive to cut its costs it may become   allocativelyXtechnicallyproductively inefficient. A market structure that is characterised with many buyers and sellers selling   homogeneous badgooddifferentiated products while having perfect flow of information is called  perfect competitionmonopolycontestable marketmonopolistic competition . Under monopolistic competition, firms face  an upward a constanta downward a hyperbolic sloping demand curve that is  inelastic unitary constantelastic . Their products are   uniquehomogeneous differentiated identical from those of competitors.