Economics Unit 3 AQA

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  • Created by: Ashleigh
  • Created on: 04-12-13 14:10
what is Productive efficiency?
Producing at the lowest cost. Achieved through re-organisation, investment in new technology, training for staff
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what is Technical efficiency?
Achieved if the same output can be produced using fewer inputs
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what is Allocative efficiency?
Occurs where the goods and services being produced match the demand by consumers
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what is Social efficiency?
Occurs where the private and social cost of production is equal to the private and social benefits derived from their consumption
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what is Dynamic efficiency?
The very long run , technical change spurs the economy
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Main objectives of firms?
Profit maximisation
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how is profit maximisation achieved?
When marginal = marginal cost
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Alternative objectives?
Revenue maximisation, Sales maximisation and profit satisfying
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Other cards in this set

Card 2

Front

what is Technical efficiency?

Back

Achieved if the same output can be produced using fewer inputs

Card 3

Front

what is Allocative efficiency?

Back

Preview of the front of card 3

Card 4

Front

what is Social efficiency?

Back

Preview of the front of card 4

Card 5

Front

what is Dynamic efficiency?

Back

Preview of the front of card 5
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