Author Question: Allocative efficiency means that a. firms have maximized production b. all mutually beneficial ... (Read 47 times)

casperchen82 · **on:** Jun 30, 2018

Allocative efficiency means that
a. firms have maximized production
b. all mutually beneficial trades have taken place
c. the next unit sold will increase total surplus
d. producer surplus is maximized
e. no mutually beneficial trades have occurred

Question 2

Business-class airline tickets cost much more than coach-class tickets because, compared to householders, businesspeople's demand for travel is
a. equally elastic
b. unitary elastic
c. more elastic
d. less elastic
e. not a factor in the cost of airline tickets