Completed the markets in action today (2015), what should have been the answer to the allocative efficiency question? Felt it was a strange one
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Last edited by O.c.98; 11-05-2015 at 18:28.
- 11-05-2015 18:24
- 12-05-2015 09:36
First you define allocative efficiency then you had to talk about if the farmers swtiching from agricultural products to bio fuel crops was achieving consumer satisfation. So first you could agree saying it makes fuel cheaper. Then you could disagree and say butit makes food more expensive, then include a depend apon factor. Then you make a conclusion, which i said it doesnt maximise consumer satisfication as food is more important than fuel so it decreases consumer satisfaction.