Micro- things to remember Flashcards
1
Q
What is static and dynamic efficiency
A
Static- efficiency at a given moment in time
dynamic- efficiency in the long term through investing in r+d
2
Q
What is x inefficiency
A
When firms operate above the average cost curve due to a lack of competition pressure (higher average costs than necessary)
3
Q
What is productive efficiency
A
producing at the lowest average cost ie where MC intercepts AC
4
Q
What is allocative efficiency
A
Where price/ AR is equal to marginal cost
5
Q
What are the 3 functions of money
A
- medium of exchange
- unit of account
- store of value
