Economics Unit 3 AQA 3.0 / 5 based on 1 rating ? EconomicsallA2/A-levelAQA Created by: AshleighCreated 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 1 of 8 what is Technical efficiency? Achieved if the same output can be produced using fewer inputs 2 of 8 what is Allocative efficiency? Occurs where the goods and services being produced match the demand by consumers 3 of 8 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 4 of 8 what is Dynamic efficiency? The very long run , technical change spurs the economy 5 of 8 Main objectives of firms? Profit maximisation 6 of 8 how is profit maximisation achieved? When marginal = marginal cost 7 of 8 Alternative objectives? Revenue maximisation, Sales maximisation and profit satisfying 8 of 8
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