If an allocation of economic resources is not efficient


If an allocation of economic resources is not efficient, then some of the potential gains from trade among buyers and sellers are not being realized. Explain why an allocation is inefficient if a good is not being produced by the sellers with the lowest cost. Similarly, explain why an allocation inefficient if a good is not being consumed by the buyers who value it most highly. Provide specific examples to support your answers.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: If an allocation of economic resources is not efficient
Reference No:- TGS01179942

Expected delivery within 24 Hours