If an allocation of economic resources is not efficient

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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.

Reference no: EM13886673

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