26. Is an auction socially inefficient, efficient, equitable or inequitable?

1. Inefficient, because goods go to those with the most money rather than to those who want them the most.
2. Efficient, because it allocates the units of the product to the buyers who value them the most, as evidenced by their willingness to pay.
3. Equitable, because it is only fair for goods to those who are willing to pay for them.
4. Inequitable, because not everyone can afford to keep up with the bidding.