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Defend your position by using efficiency based analysis

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1. It is said that system of markets and prices is the most efficient arrangement for coordinating and organizing activities. Do you agree with this statement? Defend your position by using efficiency based analysis? Also discuss why all other allocation schemes such as first-come-first-served, government-determined allocation, and luck might fall short of attaining a level of efficiency compared to that created by the price system. 

Reference no: EM13950611

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