Objectives and Efficiencies Flashcards
1
Q
Profit maximisation
A
MC=MR
2
Q
Sales revenue maximisation
A
MR=0
3
Q
Sales volume maximisation
A
AC=AR
4
Q
Productive efficiency
A
MC= AC
5
Q
Allocative efficiency
A
P=MC
6
Q
X- inefficiency
A
AC is bigger than AC curve
7
Q
Dynamic efficiency
A
Lowering AC curve
8
Q
Lowering AC curve
A
Dynamic efficiency
9
Q
X-inefficiency
A
AC is bigger than AC curve
10
Q
P=MC
A
allocative efficiency
11
Q
MC=AC
A
Productive efficiency
12
Q
AC=AR
A
sales volume maximisation
13
Q
MR=0
A
sales revenue maximisation
14
Q
MC=MR
A
profit maximisation
