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Business, 21.09.2020 02:01 tucecoskun

Two of the statements describe productive efficiency, two describe allocative efficiency, and the remaining two statements describe neither productive efficiency nor allocative efficiency. Classify each statement as describing productive efficiency, allocative efficiency, or not efficient. 1. Product efficiency:
To produce one more bagel, the output of donuts must fall. If Herb Farmer wants to produce one more cake, he needs to give up two loaves of bread.
2. Allocative efficiency:
Flour, which can be used to make many products, is used to make waffles and muffins because of the high demand for each product. Herb Farmer decides to use his flour and sugar to make three cakes and three loaves of bread, which his customers have demanded.
3. Not efficient:
Her Farmer makes two cakes and two loaves of bread, but uses enough flour to make three cakes and four loaves of bread. Herb Farmer decides to use his ingredients to make cakes, but his customers prefer donuts.

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Two of the statements describe productive efficiency, two describe allocative efficiency, and the re...

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