Allocation of resources is inefficient only if Oa. producer surplus is zero. Ob. some of the potential gains from trade among buyers are sellers are not being realized. Oc.consumer surplus is equal to producer surplus. Od. consumer surplus is lower than producer surplus.
Answer
Allocation of resources is inefficient only if some of the
potential gains from trade among buyers and sellers are not being
realized.
There are only 2 agents in the economy -buyers and sellers. So
the potential gains from trade has to accrue either to the buyers
or to the sellers. But if neither buyers nor sellers are realizing
the gains , then the allocation of resources has been
inefficient.
So, Option B is the correct option.
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