Efficenecy Flashcards

1
Q

X-inefficiency

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Allocative efficiency

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Productive efficiency

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is dynamic effciency

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What’s utility

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What marginal utility?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the 4 types of efficiency

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly