Efficiency Flashcards
1
Q
Where does allocative efficiency occur
A
P = MC
Point where marginal benefit is equal to marginal cost
2
Q
At what is productive efficiency achieved
A
When firm is at lowest point of AC curve
3
Q
What is dynamic efficiency
A
Achieving productive and allocative efficiency over time
4
Q
What is Pareto efficiency
A
Occurs when it is not possible to make someone better off without making someone else worse off
