When is an allocation of resources said to be inefficient
A)when a good is not being produced by the sellers with the lowest cost
B)when producer surplus is not at a minimum
C)when consumer surplus is not at a maximum
D)when equilibrium is not an equitable distribution of resources

Question

Quizplus · Accepted Answer

An allocation of resources is said to be inefficient when a good is not being produced by the sellers with the lowest cost. This means that resources are being used in a way that is not optimal, leading to higher costs and lower output than would be possible under a more efficient allocation. B, C, and D may also be desirable goals, but inefficient allocation can occur even if they are achieved.

When Is an Allocation of Resources Said to Be Inefficient