1. What is market efficiency? 2. Identify and distinguish between the different types of market structures; compare and contrast the similarities...

There are a
few different standards that can be used to define efficiency in an
economic sense, but the most commonly used is what we call Pareto
efficiency.

If a market is Pareto-efficient, it is impossible
to redistribute goods in such a way that we could make one person better off without making
anyone worse off.

I think this is worth explaining a bit further; at first
glance, many people often infer that Pareto efficiency is very easy to obtain. "Obviously,
if I take something from you and give it to someone else, you are worse off. Therefore it is
Pareto-efficient." This is incorrect. A market...