In an efficient economy,
A)no one could be made better off by a change in the way goods are allocated
B)revenue for all firms is maximized
C)a change in the way goods are allocated could make someone worse off
D)goods are allocated fairly among individuals
E)no one would be made worse off if there is a change in the way goods are allocated

Question

Quizplus · Accepted Answer

In an efficient economy, resources are allocated in a way that maximizes total surplus or the sum of consumer and producer surplus. This means that any change in the allocation of goods would result in someone being worse off, as resources are already allocated in the most efficient way, and any change would reduce the total surplus. Therefore, option C is the correct choice. Option A and E are not necessarily true, as some individuals could be made better or worse off depending on the specific change in allocation. Option B is not necessarily true, as revenue maximization may not lead to the most efficient allocation of resources. Option D is also not necessarily true, as efficiency does not necessarily mean equal allocation or fairness.

In an Efficient Economy