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Efficiency and the benchmark

Efficiency and the benchmark

Supply and demand diagram with demand labelled MPB, supply labelled MPC, equilibrium at £12 and 40,000, and consumer and producer surplus shaded

In a competitive free market, demand shows marginal private benefit, or MPB, and supply shows marginal private cost, or MPC. Their intersection gives the market equilibrium price and quantity.

Understanding market failure Lesson

  1. A Level
  2. /Economics
  3. /Understanding market failure