Characterizes every sector

Commentary and Notes to Text 15.7.1.3

Productive efficiency — производительная эффективность

Allocative efficiency — эффективность, связанная с распределением ресурсов

Distributional efficiency — эффективность, связанная с распределением продукции

The rate of technical substitution — показатель технического замещения

The marginal rate of substitution — предельный показатель замещения

To go on making that switch — продолжать делать то же самое

15.7.1.4. Read the text “Market Power” and explain how the market power mechanism acts.

Market Power

While examining the market situation we have considered the demand and supply relation, or

The market equilibrium which is established under the market power.

Market power is the degree to which a firm exercises influence over the price and output in a

particular market. Under perfect competition, all firms are assumed to have zero market power: they

Have to take the going price, and cannot hope to alter it on their own. Wherever firms represent a

Non-negligible portion of the whole market, however, instead of facing a flat demand curve, they wil

Face a downward-sloping one. This means that, in contrast to the perfect competitor, if they raise

Their price, they do not lose all their sales. It also means, however, that if they wish to increase their