Dan owns a small grocery store. When an item doesn't sell well, he'll typically stop carrying it in favor of something that sells better. What type of efficiency does this help him achieve?

Respuesta :

Answer:

allocative efficiency

Explanation:

allocative efficiency refers to an effiency that is achieved by focusing your resources on something that give you the most value.

This is reflected on Dan's action above.

the items that he sell on his grocery store is considered his resource. He need to spend money in order to buy it before he can sell it with higher price.

But, when a particular item is not selling well, he replace that item with another item.  This mean that he allocated his resources into the new items because he believe that it will give him the most value.