Efficenecy

Question 1

X-inefficiency

Answer 1

A firm’s inability to fully utilize its resources so ac are higher.

Question 2

Allocative efficiency

Answer 2

Resources are distributed to goods and services that consumers want( they procure what is demanded). Where P=MC.

Question 3

Productive efficiency

Answer 3

Where a firm gets the lowest possible cost to make a product with there current capital. Where AC=MC.

Question 4

What is dynamic effciency

Answer 4

A firm matching the changing demand of a market as its constantly innovating over time.

Question 5

What’s utility

Answer 5

The value and satisfaction a consumer gains from consuming a product or service

Question 6

What marginal utility?

Answer 6

Benefit a consumer gains from consuming one additional unit of product or service

Question 7

What are the 4 types of efficiency

Answer 7

1.Productive efficiency
2.Allocative efficiency
3.x-inefficiency
4.Dynamic efficiency