In industry A,all displaced workers remain in the union sector waiting to be recalled.In industry B,all displaced workers seek work in the nonunion sector.All else constant,the:

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Allocative efficiency is a state where all resources are distributed optimally to maximize the production output. In industry A, where all displaced workers remain in the union sector waiting to be recalled, it means that some resources are idle. This leads to an allocative efficiency loss. In industry B, where all displaced workers seek work in the nonunion sector, it means that all resources are utilized optimally. Therefore, the allocative efficiency loss in industry A is greater than in industry B.

In Industry A,all Displaced Workers Remain in the Union Sector