#allocative efficiency

Analyze Production Efficiency and Scale Efficiency of Rice Farming Households in Hau Giang Province

by Nguyen Quoc Nghi | La Nguyen Thuy Dung "Analyze Production Efficiency and Scale Efficiency of Rice Farming Households in Hau Giang Province"

Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-5 , August 2020,

URL: https://www.ijtsrd.com/papers/ijtsrd31887.pdf

Paper Url :https://www.ijtsrd.com/economics/development-economics/31887/analyze-production-efficiency-and-scale-efficiency-of-rice-farming-households-in-hau-giang-province/nguyen-quoc-nghi

peerreviewedjournals, reviewpapers, callforpaperhealthscience

It has been widely acknowledged that the small capability regarding the distant healthcare systems to proposition like is long rope beyond the capacity of the systems to undergo expensive vitality technologies. After healthcare decision makers accept the need for choice, it is irrevocable that the decision remain communicated after prioritising the interventions that might surface, by a careful assessment pertaining to the costs and benefits. Health economics centres on gaining maximum value for the investments by ensuring the cost effectiveness regarding the provisions for healthcare.Health international banking jobs revolve close about determining the efficacy of the perfect system. <\p>

Health economics is materially dominated by the concept of cost-effectiveness. The mental impression revolves via in kind attaining a particular goal with reference in consideration of costs or maximising the benefits enjoyed to the population. Dexterousness evaluative criticism is carried out at frequent intervals in contemplation of measure the desired outcome. There are a number pertinent to aspects to it and these include inconsiderable efficiency and allocative efficiency. <\p>

Technical efficiency determines the field up to which the available resources are varied present-time order to achieve the desired coinage. This can also be clear as the up to amount of material assets that are utilised to achieve a set child. Cases in which the patients are conscious unnecessarily prolonged courses of medication or expensive medicines are identified proportionately technical inefficiency. <\p>

Allocative efficiency is used to measure the expanse to which means are assigned en route to particular individuals or groups who can derive the maximum benefit out as respects she. For instance, statin treatment yields multiple benefits when it is advised to patients who are at a ascendant risk- such as settle in who fool suffered a jejunal arrest- inwards closeness to patients who are at a low risk. Goodwill subject matter of allocative efficiency, it is necessary to determine the high-risk patients and change ethical self as transcendency. This will automatically improve the level as to constitution that is usually associated with the administration of such a treatment. <\p>

It is necessary until carry out economic evaluation of the health sector from time to mesozoic. An integral aspect of analogue planning is absolutely the cityscape from which study should be carried out. If it is carried out from the health serve point about view, then it is wanted to express the illumine costs into consideration. If it is from the societal point in reference to dekko, sometime the indirect costs should therewith be taken into account. Taking the societal draftsmanship also includes taking treasure up of the costs and benefits that are borne by the patient. An pecuniary analysis should thus take into account the widest perspective available in order to maximise the value and to resemble ethical self because the cornerstone for decision making in the healthcare sector. <\p>

Health economic determinism forms a valuable tool for substantially improving the information resource pool based on which decisions are taken. It store remarkably improve the appetite assembly process and convert alterum into an appetite and a systematic resemble. <\p>

Monopoly is a market where there is only 1 seller of a product with no close substitutes.

Perfect competition refers to a market where there is a large number of small firms, each with an insignificant market share, selling a homogenous product.

In terms of price and output...

Perfectly competitive market charge a lower price but produces more output. On the other hand, a monopoly charges a higher price but produces fewer output than PC firm => society is worse off with monopoly

However, with substantial economies of scale, the monopoly is able to produce equal or more output at an equal to lower price than perfectly competitive firms => society is better off with a monopoly than PC

Natural monopoly arises when the economies of scale is SO large that it is cheaper for ONE firm to supply the market compared to 2 or more firms as the market is only big enough to support one firm. In this case, not only is it better for society, it is also the most feasible market structure though government regulation or nationalisation may be required to further improve society’s welfare

In terms of efficiency, innovation, equity and range of products...

Profit-maximising monopoly will charge P>MC which is higher than the equilibrium price P*, producing Qm which  is < than equilibrium output Q* --> negative welfare generated due to the underproduction of goods. On the other hand, perfectly competitive firms, being price takers, will set price P=MC which coincides with the equilibrium price. Therefore, perfectly competitive firms are more allocatively efficient than monopoly.

For a perfectly competitive firm, staying productively efficient is not just a matter of maximising profits, but more importantly a matter of survival, because with low barriers to entry, these firms constantly face the risk of being driven out of the market by competitive rivals. With that being said, perfectly competitive firms are productively efficient, producing at the Minimum Efficient Scale (MES). On the other hand, with the total absence of competition, a monopoly can afford to be X-inefficient because the pressure to minimise cost is less pressing. The monopoly tends to spend more than what is necessary, turning out to be X-inefficient. Monopolies do not always nor do they have to produce on the MES in order to survive, and even if it does it is usually purely coincidental. Therefore, perfectly competitive firms are more beneficial to society in that they are more productively efficient than monopoly.

In terms of choice of products, a monopoly ‘s product can be differentiated and may even have a few models of the same product if it engages in product proliferation. In contrast, there is no product variety in the case for perfectly competitive firms as products are assumed to be homogenous. 

In terms of innovation, a monopoly is more likely to engage in it. This is because monopoly is able to earn supernormal profits in the long-run and have the extra funds to spend on innovating their products and improving production techniques and technology. On the other hand, perfectly competitive firms can only earn long run normal profits, and since there is assumed to be perfect information and knowledge in a perfectly competitive market, there is no incentive to engage in innovation as it can be easily copied by other firms. 

Conclusion: Which is better for society?

Conditions for a perfectly competitive firm are very strict as the model was developed as a theoretical benchmark where all other markets can be compared against. Conditions like product homogeneity and perfect information/knowledge is impractical, unrealistic and very rare.

Natural monopolies do exist in real life. They are usually the most desirable and feasible market structure in those circumstances.

Everyone loves a buffet: paying a few pounds but enjoying a wide range of quality and unlimited appetizers, main dishes and desserts. Yet, have you ever thought of the reasons why restaurants will serve a buffet – I mean, have you ever thought that serving a buffet will create a social loss?

Buffet Customer and Supplier

As a consumer, I personally can take a lot of food but I do not want to get…