Suppose the only resource in the world is an apple pie, and Ann and Bob both like pie. Let's imagine that the world begins withAnn and Bob each owning two slices of pie. Now, suppose, Ann's share is taken away, and one slice goes to Bob and one slice is leftunallocated. Then:Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aThe new allocation is inefficient because Ann was made worse off than before.The new allocation is efficient because the pie has been reallocated.The new allocation is inefficient because the unallocated pie could be used to make either one happier without hurtingthe other.dThe new allocation is inefficient because Ann and Bob are no longer splitting the pie equally.

Efficiency implies the using the resources at best possible way. The efficient allocation is that…

Answered: is inefficient bec

Business

Economics

is inefficient bec

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose the only resource in the world is an apple pie, and Ann and Bob both like pie. Let's imagine that the world begins with
Ann and Bob each owning two slices of pie. Now, suppose, Ann's share is taken away, and one slice goes to Bob and one slice is left
unallocated. Then:
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a
The new allocation is inefficient because Ann was made worse off than before.
The new allocation is efficient because the pie has been reallocated.
The new allocation is inefficient because the unallocated pie could be used to make either one happier without hurting
the other.
d
The new allocation is inefficient because Ann and Bob are no longer splitting the pie equally.

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