Efficiency Flashcards
1
Q
Monopoly of Microsoft in the 90’s
A
Microsoft controls 90% of computer
2
Q
What is productive efficiency
A
When average cost is at its lowest
3
Q
When does MC= AC
A
at productive efficiency
4
Q
What is allocative efficiency
A
when welfare is maximised
5
Q
Point of allocative efficiency on a diagram
A
MC=AR
6
Q
X inefficiency
A
When costs of production is voce AC curve
7
Q
Static effencies
A
efficiency at one point at time
8
Q
Dynamic efficience
A
changing technology improves a firms output and this enabled because SN profit has allowed forms to invest in new tech
