explain using diagram how a single seller within the market can maintain an inefficient allocation of resources?
Answers
Answer:
In market, if seller is only a single person in counting, then it will not get possible to sell all the products uniformly and make an even distribution of the resources. The main reason for this cause is, due to the disbalance of the ratio of consumer and product supply.
Explanation:
When there are many consumers present, and inappropriate supply is sustaining, then it may happen that some customers shall get resources while others shall keep on waiting for an unending period of time.
Answer:
Explanation:
Resource allocation is the way in which available factors of production are allocated among different uses.
The question points to the monopoly market system where there is a single seller controlling the price of the commodity in the market. Inefficient allocation can be ensured when the monopoly market firm is under performing to their capacity. they are not doing optimal production and earning super normal profits. they may be saving on their employees or on raw material quality. because they are the only single firm producing the commodity.