5.10 Market Structure, Static Efficiency, Dynamic Efficiency and Resource Allocation

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5 Terms

1
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What is allocative efficiency and where is it found

When the goods and services produced are exactly what consumers want and need in the right quantities and is found when P=MC

2
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What is X-efficiency and where is it found

When a firm minimises waste and uses it resources efficiently and is found anywhere on the AC curve

3
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What is productive efficiency and when is it achieved

When a firm is producing goods or services at the lowest possible cost and is found at the lowest point on their average cost curve, minimising costs

4
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What is dynamic efficiency 

When a firm makes SNPs and reinvests those extra profits into R&D

5
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What is static efficiency

Efficiency at a specific point in time, encompassing both productive and allocative efficiency