Allocating products with long lines, using a first-come, first-served system, is:
A) the only way scarce goods can be allocated.
B) necessary when waiting is a costless exercise.
C) efficient, since people who are willing to wait the longest get the products.
D) inefficient, because waiting wastes time.

Question

Quizplus · Accepted Answer

Allocating products with long lines, using a first-come, first-served system, is inefficient because waiting in line wastes time. There are other ways of allocating scarce goods that are more efficient, such as auctions, lotteries, or price discrimination.

Allocating Products with Long Lines, Using a First-Come, First-Served System