Classify cach statement as describing productive efficiency, allocative efficiency, or a situation that is inefficient.

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Classify Cach Statement As Describing Productive Efficiency Allocative Efficiency Or A Situation That Is Inefficient 1 (42.92 KiB) Viewed 87 times

Classify cach statement as describing productive efficiency, allocative efficiency, or a situation that is inefficient. Flour, which can be used to make many products, is used to make waffles and muffins because of the high demand for each product. To produce one more bagel, the output or donuts must fall. Herb Farmer decides to use his flour and sugar to make three cakes and three loaves of bread, which his customers have demanded. Herb Farmer makes two cakes and two loaves of bread but uses enough flour to make three cakes and four loaves of bread. If Herb Farmer wants to produce one more cake, he needs to give up two loaves of bread. Herb Farmer decides to use his ingredients to make cakes, but his customers prefer donuts.