Illustrate and explain using diagrams how a single seller within the market can maintain an
inefficient allocation of resources;
Answers
Answer:
In a market, if there is a single seller, then it shall not be possible for that seller to sell all the products 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:
A single seller within the market can maintain an inefficient allocation of resources by producing less at a higher cost to make most of the profits. By doing this, he can maintain inefficient allocation of resources and create dead weight loss.
Drawing diagram is not possible here. You can make it by showing a graph in which production is less, price is high, and profit is also high.