Suppose the owner of a rare piece of art has recently died, and their will specified that an economist should make sure that the painting is passed on "efficiently". Which of the following methods is most likely to result in efficiency?

Question

Quizplus · Accepted Answer

Auctioning the painting to the highest bidder would most likely result in efficiency as it would allow the market to determine the painting's value and ensure that it ends up with the person who values it the most. Giving the painting to the owner's only child may not necessarily be efficient, as there may be other individuals or organizations willing to pay more for the painting. Putting the painting into storage may preserve its quality, but it does not ensure that it is being passed on efficiently.

Suppose the Owner of a Rare Piece of Art Has