A-level Paper 1, November 2021Markets and Business Behaviour
A-level Paper 1, November 2021, Q5(b)
Which one of the following will exist in the short run if Chiara makes a loss?
Multiple choice1 mark
Context
In Sicily, many households can grow lemons of the same quality as each other. Chiara decides to sell lemons at her local market, expecting to make a normal profit. She notices that all of the many lemon sellers are charging exactly the same price.
AAllocative efficiency and productive efficiency
BAllocative efficiency and productive inefficiency
CAllocative inefficiency and productive efficiency
DAllocative inefficiency and productive inefficiency
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