# Microeconomics - Pareto Efficient

posted by .

Are all markets with deadweight loss pareto inefficient (including quotas, rent control, taxes, tarriffs, monopoly (unless there is price discrimination), oligopoly cournot model, oligopoly bertrand model and oligopoly stackleberg model)?

Am I right? I think that pareto efficient means the firms realize all potential gains and the markets that I've listed above do not realize all the outcomes (not sure if oligopolies are considered pareto inefficient though because of the incentive to cheat).

• Microeconomics - Pareto Efficient -

I think your first sentence is right. However, your reasoning is a bit off-base. Pareto-efficient implies that people with a marginal benefit above the marginal cost of producing the good can purchase that good. The above reasons you gave for deadweight losses also imply some mis-match between marginal cost and marginal revenue.

BTW, throw in externalities into your reasons for deadweight loss

## Similar Questions

1. ### Economics

Is the airline business considered to be a monopoly or oligolply?
2. ### Economics

Among monopoly, oligopoly, Monopolistic competition, and perfect competition, how would you classify the markets for each of the following drinks?
3. ### Economics - Cournot Model

There is one firm with a marginal cost of 0. It's monopoly price is 10. Another firm enters, also with zero marginal cost. Using the Cournot model, would would the new oligopoly price be?

5. ### economics-oligopoly

Suppose there are only two producers, A and B, in a market producing the same good with the same total cost function TC=0.05 Q^2 +100. The market demand is given by Q=1000-5P. a) Find the equilibrium price and total output in the Bertrand …
6. ### economics

out of the four economic market models : competitive market, monopoly market, monopolistic competition and oligopoly in your opinion which is the best market model and which is the worst
7. ### microeconomics

among monopoly, oligopoly, monopolistic competition, and perfect competion, how would you classify the markets for each of the following drinks?
8. ### microeconomics

among monopoly, oligopoly, monopolistic competition, and perfect competion, how would you classify the markets for each of the following drinks?
9. ### Economics

What do you think are the pluses (advantages) and minuses (disadvantages) when firms have market power?
10. ### Economics

What do you think are the pluses (advantages) and minuses (disadvantages) when firms have market power?

More Similar Questions