efficiency

Question 1

what are the two types of efficiency?

Answer 1

the two types of efficiency are static and dynamic efficiency

Question 2

what is static efficiency defined as?

Answer 2

static efficiency is efficiency at a moment in time

Question 3

why are the two types of static efficiency?

Answer 3

the two types of static efficiency are productive and allocative efficiency

Question 4

what is productive efficiency defined as?

Answer 4

productive efficiency is where you cannot produce more of one good without producing less of another (lowest point of AC)

Question 5

how is productive efficiency shown on a graph?

Answer 5

productive efficiency is shown as the lowest point of AC

Question 6

what is allocative efficiency?

Answer 6

allocative efficiency is producing goods and services to meet the needs and wants of consumers

Question 7

how is allocative efficiency shown on a graph?

Answer 7

allocative efficiency is shown on a graph as P=MR

Question 8

what is dynamic efficiency defined as?

Answer 8

dynamic efficiency is

Question 9

how is dynamic efficiency shown on a graph?

Answer 9

dynamic efficiency is shown as supernormal profits

Question 10

which firms are able to earn supernormal profits?

Answer 10

competitively imperfect firms are able to earn supernormal profits to varying degrees