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 

HideShow resource information
  • Created by: Jade
  • Created on: 01-12-12 11:37

1. What is research and development?

  • Research and development is the creative work undertaken to apply scientific and technological innovations to products and processes.
  • Research and development is improvements in products, processes and productivity over time by exploiting economies of scale or successful investment in research and development. In short, efficiency over time.
1 of 14

Other questions in this quiz

2. What is static efficiency?

  • Static efficiency occurs in a single time period e.g. efficiency now
  • Static efficiency occurs over time

3. 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

4. What is dynamic efficiency?

  • Dynamic efficiency is improvements in products, processes and productivity over time by exploiting economies of scale or successful investment in research and development. In short, efficiency over time.
  • Dynamic efficiency is the creative work undertaken to apply scientific and technological innovations to products and processes.

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.

Comments

davidsalter

Report

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

Similar Economics resources:

See all Economics resources »See all Production and efficiency resources »