Efficiency Flashcards
1
Q
What is productive efficiency
A
Producing at the lowest possible average cost
2
Q
What are 2 things needed for technical efficiency to take place ?
A
Maximises the use of factors of production
Minimise the average costs
3
Q
Statically efficient
A
Efficient at any one time
4
Q
Dynamically efficient
A
Constantly remaining efficient
5
Q
What is x inefficiency in the graph ?
A
In the middle not on curve
