1. Which of these is NOT an example of X inefficiency?
- Adopt inefficient managerial practices
- Technical economies of scale
- Employ surplus labour
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Other questions in this quiz
2. Where does allocative efficiency occur?
3. Which one of these should increase allocative efficiency?
- Increased hit and run competition
- Increased competition
- Increased market share for a firm
4. What is true of allocative efficiency?
- The price paid by the consumer represents the price the supplier is willing to sell for
- 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
5. What is productive efficiency?
- Productive efficiency is where firms are operating at the lowest point on the MR curve
- Productive efficiency is where firms are maximising output from given inputs.
- Productive efficiency is when scarce resources are used in a way that maximises consumer satisfaction.
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