Joe and Sue: Allocating Baseball Gloves Efficiently
Efficient Allocation of Baseball Gloves
To maximize efficiency in the allocation of baseball gloves, it is important to consider the values attached to each glove by Joe and Sue. Efficiency is achieved when resources are allocated in a way that maximizes the total benefit or utility.
In this scenario, Sue values a baseball glove at $40, which is lower than its production cost of $50. On the other hand, Joe values an additional glove at $100, which is higher than the production cost. Therefore, to maximize efficiency, it is better for Sue to receive the glove as it results in a greater overall utility.
Efficiency in resource allocation ensures that resources are used in a way that maximizes the benefits for all parties involved. By allocating the baseball glove to Sue, we are able to achieve a higher level of efficiency in this particular situation.
Joe values an additional baseball glove at $100 and Sue values a baseball glove at $40. To maximize efficiency, who should receive the glove? To maximize efficiency, Sue should receive the glove.