Economics (AS & A Level) · Oct / Nov 2022 · Paper 32 · Question 1
9708Efficiency and market failure
What is most likely to improve the allocative efficiency of a market?
- Aa higher market concentration ratio
- Bcollusion between firms in the market
- Centry of new firms into the market
- Dmergers of firms in the market
As printed in the paper
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Correct answer: C. entry of new firms into the market
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