Savannah is an attorney and also an excellent typist. She can type 120 words per minute, but charges attorney fees at $80 per hour. Matt would like some typing work but can only type 60 words per minute. The economic efficiency criterion indicates

Going by the Economic Efficiency criterion, Matt should do the typing if he is willing to be paid less than $40 per hour. This is because he is only able to type at half the speed of Savannah, therefore he should be paid no more than half of what Savannah is being paid.

This represents efficiency because if he is paid anything higher than half of what Savannah is earning for half the work she can do, he is being overpaid and resources are not be distributed efficiently.

Tundexi Tundexi · Answer 2 · 2022-01-18T12:42:53+01:00

The economic efficiency criterion does indicate that Matt should do the typing provided he is willing to do so for less than $40 per hour

An efficient economic position is achieved if we are in a position that a person cannot be made better off without making someone else worse off.

Hence, the economic efficiency criterion does indicate that Matt should do the typing provided he is willing to do so for less than $40 per hour

Therefore, the Option C is correct.