Question: Use a simple two-good model of resource allocation (such as that in Figure 10.2) to explain the difference between technical efficiency and economic (or allocative)

Use a simple two-good model of resource allocation (such as that in Figure 10.2) to explain the difference between technical efficiency and economic (or allocative) efficiency. Would you agree with the statement that "economic efficiency requires technical efficiency, but many technically efficient allocations are not economically efficient"? Explain your reasoning with a graph.

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