Conditions that cause Allocative Inefficiency cause:

(a)  

When all benefits & costs are internalized:

(a)  

Allocative Efficiency/Socially Optimal Efficiency Occurs in a Perfectly Competitive Product Market when:

(a)  

allocative efficiency/socially optimal efficiency occurs for a firm in a perfectly competitive product market when:

(a)  

Allocative Efficiency/Socially Optimal Efficiency occurs for a firm in a perfectly competitive labor market when:

(a)  

Explain the meaning of INTERNALIZED costs and benefits:

When costs & benefits are internalized total economic surplus is:

(a)  

What occurs when costs and benefits are NOT internalized:

(a)  

What are four causes of Market Failure?

How are market failures corrected?

(a)