QUESTION 11. Imperfectly competitive firms, such as egg producers, miss the mark when it comes to meeting allocati efficiency and productive efficiency. A. What makes allocation efficiency and productive efficiency so important to an economic system? B. What market structure meets the requirements for both allocation and productive efficiency? C. Why doesn't monopoly or oligopoly meet either of these efficiencies? QUESTION 12. From 1959 - 1970s, Paragon Glass Works, Lewiston, Maine was one of the bigger producers of glass ornament in the United States. It competed with larger manufacturers in Germany, Poland, and other countries. Colored glass ornaments sold for "as little as 29 cents for half a dozen big ones, 10 cents for a dozen little ones." Economic forces changed in the mid-1970s. Increased competition from Asia plus a "fickle public" whose preference for tradition changed in favour for the newest and latest trends. For a time, Paragon found a niche in producing glass bulbs for headlights, but it was not long term. Now "sought after by Christmas crazed collectors," the glass ornaments now sell for as much as $50 a piece, depending on their size and condition." A. Draw the market for "Items which are rare or one of a kind." Incorporate ELASTICITY OF SUPPLY and ELASTICITY OF DEMAND into your graph. Explain why you drew supply and demand with the elasticity you did. B. Preferences for collectibles such as made in the USA Christmas baubles or ornaments are rising as people remember special times. Show this change on the graph. Label the new equilibrium with P1, Q1. Does your model verify the DRAMATIC rise in prices for such collectibles