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Allocative Efficiency
The state of resource allocation where goods and services are distributed according to consumer preferences and utility maximization.
Producer Surplus
The difference between what producers are willing to accept for a good or service versus what they actually receive.
Consumer Surplus
The gap between the amount consumers are prepared to spend on a product or service and the actual price they pay for it.
Consumer Surplus
The difference between what consumers are willing to pay for a good or service and what they actually pay.
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