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Allocative efficiency

Start by explaining in your own words what the term allocative efficiency means. Be non-technical; pretend you are explaining it to your friend the English major. Use a simple example if that helps.

Did the trading system described in the paper improve allocative efficiency or not? When you look at the results, what is one indicator of this?

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Responses should be 1–2 pages, neatly formatted with double spacing, 12 point font, and 1” margins.

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