Abstract
Economic efficiency is achieved when society has attained maximum satisfaction from the allocation of its limited resources.Given certain conditions, the market can achieve simultaneous exchange, technical and economic efficiency. Exchange efficiency: no overall increase in satisfaction can be achieved by an exchange of goods since preferences are related to market price. A single market price will rule for each good until each consumer is in equilibrium.
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© 1994 Jack Harvey
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Harvey, J. (1994). Market Failure and the Role of Government. In: Economics Revision Guide. Palgrave, London. https://doi.org/10.1007/978-1-349-13313-0_14
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DOI: https://doi.org/10.1007/978-1-349-13313-0_14
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-60195-2
Online ISBN: 978-1-349-13313-0
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