Efficiency - A2 Economics OCR

All the types of efficiency that are relevant to the A2 Transport exam. 

P - price 

MC - marginal cost 

MR - marginal revenue 

AC - average cost 

AR - average revenue 

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  • Created by: Jade
  • Created on: 01-12-12 11:37

1. What is true of allocative efficiency?

  • The price paid by the consumer represents the true cost of producing the last unit
  • The price paid by the consumer represents the lowest cost of producing the last unit
  • The price paid by the consumer represents the price the supplier is willing to sell for
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Other questions in this quiz

2. What is X inefficiency?

  • X inefficiency occurs when there is little incentive for firms to want to be efficient.
  • X inefficiency occurs when a firm uses more inputs than are necessary for a given level of output. Associated with lack of competition e.g. within a monopoly
  • X inefficiency occurs when a market fails to deliver the amount of products and services most wanted by consumers

3. Where does productive efficiency occur?

  • AR=MC
  • AC=MC
  • P=MC

4. Improving products helps a firm gain or at least retain ______ in the face of competition

  • Revenue
  • Market share
  • Profit

5. Allocative efficiency does not apply to which market structure?

  • Monopolies
  • Oligopoly
  • Monopolistic competition
  • Perfect competition

Comments

davidsalter

A set of 10 questions on efficiency. Take a break from reading by testing yourself. Could show areas for further study.

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