Efficiency analysis Flashcards
1
Q
consumer analysis of allocative efficiency
A
- Resources follow consumer demand
- Low prices
- Maximisation of CS
- High choice
- High Quality
2
Q
producer analysis of allocative efficiency
A
- Retain or increase market share
- Stay ahead of rivals
- Increase profit
3
Q
consumer analysis of productive efficiency
A
- Lower prices
- High consumer surplus
- Full exploitation of EoS
4
Q
producer analysis of productive efficiency
A
- More production at lower AC
- Higher profit
- Lower prices and greater market share
5
Q
consumer analysis of dynamic efficiency
A
- New innovative products
- Lower prices over time
- High consumer surplus
6
Q
producer analysis of dynamic efficiency
A
- LR profit max.
- Lower costs over time
- Retain/ increase market share
- Stay ahead of rivals
7
Q
consumer analysis of x efficiency
A
- Low prices
- Higher consumer surplus
8
Q
producer analysis of x efficiency
A
- Lower costs
- Higher profits
- Lower prices + higher market share
