IBDP ECONOMICS HL Allocative Efficiency CHEAT SHEET with detailed analysis and summary of the demand curve as a marginal benefit curve and the supply curve as a marginal cost curve, and allocative efficiency as when marginal benefit is equal to marginal cost
ECS1601 Assessment 7 - Alternative 2024 – DUE 2 November 2024 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions.
ECS1601 Assignment 7 (ALTERNATIVE COMPLETE ANSWERS) 2024 - DUE 2 November 2024
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IB Economics HL
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allative Cichy
Achieved when the
refers to
producing the
quantity of goods mostly wanted by society
.
allocates its that
economy
resources so
society gets the most benefits from consumption
DEMAND AS A MARGINAL BENEFIT CURVE IM B)
The quantity
greater the
good consumed by
of a a consumer
,
the
greater the satisfaction
But the ,
extra
benefit provided by each additional unit increases
by smaller and smaller ants
↳
marginal benefit
This means that the price the consumer is
willing to pay gets smaller as the number of units
bought
Increases ,
% consumers will
only be
willing to
buy an extra unit if the price falls .
SUPPLY AS A MARGINAL COST CURVE IM C) cost
p marginal
As the units of outputs increase ,
so does the extra cost to
produce one more output of the
good
This means that
producers will be willing to produce / sell an extra unit of the
good only it's price
increases .
C demand ) )
g) supply
curve ( curve
ALLO CAT WE EFFICIENCY 8 M¥ =
MC
6
extra benefit to society of getting one more unit of the
good = extra cost to
society of producing one more unit of the good .
Alternatively ,
if MB > MC ( more should be
produced ) society places a
greater value on an extra unit of the
good than
it costs to
produce it
if Mc > MB (less should be produced) It costs to produce extra unit
good than the value
more an
of the
society puts on it
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