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While waiting for his wife to get ready to go out, Marcus picks up one of her interior design magazines and skims through the pages.Six ads in the magazine are for flooring and carpeting, but he and his wife don't need new flooring or carpeting, and he barely glances at these ads.This is an example of:
Allocative Efficiency
A state of resource allocation where goods and services are distributed according to consumer preferences, reflecting the highest possible welfare.
Economic Profits
Profits exceeding the opportunity costs of all resources employed, indicating above-normal returns.
Purely Competitive
Another term for perfectly competitive, describing a market with no single buyer or seller able to influence prices.
Demand Curves
Graphical representations of the relationship between the price of a good and the quantity demanded by consumers at various prices.
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