<P> Market efficiency can be achieved in competitive market by using demand and supply curve . The intersection of the demand and supply curve is the point where market equilibrium occurs . This situation implies that marginal benefit equals marginal cost, what is a necessary circumstance for economic efficiency . </P> <P> 3 . Pareto efficiency </P> <P> Another way how to judge the extent of government intervention is provided by Pareto efficiency . The core of this criterion is based on an idea that the state of affair is Pareto efficient or Pareto optimal when "no one can be made better off without some being made worse off". Economy is efficient when marginal social benefit is equal to marginal social cost . Marginal social benefit represents only one particular change that induces a gain to society, while the marginal social costs stands for the cost of the change . Consequently, there is a market efficiency because if any change occurs it does not induce any net gain . </P> <P> There are three main core conditions for Pareto efficiency which are also useful for analysis of economic efficiency: </P>

Write a detailed note on efficient market hypothesis