1. The opportunity cost (or marginal cost) to society of providing a single MRI scan is essentially zero. Yet, hospitals charge substantially more. The result is the creation of dead weight loss. Based on this example, explain the concept of allocative efficiency:

- answer here

2. How does the existence of this dead weight loss relate to the market structure applicable to hospitals? It would be easiest to answer this by explaining how another market structure might result in a different outcome.

- answer here