Yr 2 Efficiency

Question 1

Allocative efficiency is…..

Answer 1

Where price = marginal cost

G+S are optimally distributed between buyers

Question 2

Productively efficient is ….

Answer 2

The lowest point on the average total cost curve

efficient use of scarce resources and high level of factor productivity

Question 3

Dynamic efficiency is….

Answer 3

Improvements in static efficiency over time

Question 4

Don’t think you dodged the bullet, whats static efficiency?

Answer 4

most efficient combination of existing resources in a given point of time

Question 4

Don’t think you dodged the bullet, whats static efficiency?

Answer 4

most efficient combination of existing resources in a given point of time

Question 5

Now on a DIAGRAM, show all efficiencies in SR( supernormal profit) and LR(Normal profit)

Answer 5

Yeah you already know, check your book…

Question 5

Now on a DIAGRAM, show all efficiencies in SR( supernormal profit) and LR(Normal profit)

Answer 5

Yeah you already know, check your book…