There might be inefficiency in production

There might be inefficiency in consumption

It might be possible to make one person better off without making another person worse off

There might be considerable inequality of income among the country’s citizens

It means that a market economy will fail to secure economic efficiency

It means that a market economy will fail to secure Pareto-efficiency

It means that a market economy will fail to secure productive efficiency

It means that a market economy will fail to secure technical efficiency

The firm must be producing its output at the lowest possible cost

The firm must be technically efficient.

The firm must use its resources in a way which means that its MPK/MPL equals PK/PL

All firms which use the same types of capital and labour must face the same prices for them

Both X and Y

X only

Y only

Neither X nor Y

Both X and Y

X only

Y only

Neither X nor Y