When does inefficiency exist in an economy
A)when a good is distributed fairly among buyers
B)when a good is not distributed fairly among buyers
C)when a good is not being produced by the lowest-cost producers
D)when a good is being consumed by buyers who value it most highly

Question

Quizplus · Accepted Answer

Inefficiency exists in an economy when a good is not being produced by the lowest-cost producers. This means that resources are being wasted and production costs are higher than necessary. This can lead to higher prices for consumers and lower profits for producers, ultimately reducing overall economic output and growth. The other options do not necessarily indicate inefficiency in the economy.

When Does Inefficiency Exist in an Economy