How to use the concept of allocative efficiency

Reference no: EM13190311

The point M on the accompanying production possibilities curve depicts the mix of output that is determined by the free market.
In your opinion as an economist, where is the socially optimal mix of output? Mark this on the PPC as point S and explain why you think this mix of output is superior to point M. Use the concept of allocative efficiency.

Reference no: EM13190311

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