Efficiency

Question 1

What are the types of economic efficiency?

Answer 1

Productive , allocative , dynamic and static and x-efficient

Question 2

What is productive efficiency?/when does it occur?

Answer 2

Occur when a firm produces goods and services at the lowest possible cost

Question 3

What is allocative efficiency?/when does it occur?

Answer 3

Occurs when resources are allocated to their most valuable use

Question 4

What is dynamic efficiency?/when does it occur?

Answer 4

Is efficiency over period-time (ie, the long run)

Question 5

What is static efficiency?/when does it occur?

Answer 5

Is efficiency at a particular time , for example the short-run.

Question 6

At what point is productive efficiency produced?

Answer 6

MC=AC

Question 7

At what point is allocatively efficiency out-put produced?

Answer 7

P=MC

Question 8

What produces static efficiency?

Answer 8

Productive + allocative efficiency

Question 9

What causes dynamic efficiency?

Answer 9

Innovation technology=> improvements to raise productivity/quality of goods

Question 10

What causes x-efficiency?

Answer 10

Actual costs match potential costs

Question 11

What is x-efficiency??

Answer 11

X-efficiency refers to the degree of efficiency maintained by firms under conditions of imperfect competition.