1. Which one of these should increase allocative efficiency?
- Increased competition
- Increased market share for a firm
- Increased hit and run competition
1 of 14
Other questions in this quiz
2. 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.
3. 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
4. Improving products helps a firm gain or at least retain ______ in the face of competition
- Market share
5. What is allocative efficiency?
- Allocative efficiency is where firms are achieving economic efficiency
- Allocative efficiency is when scarce resources are used in a way that maximises consumer satisfaction.
- Allocative efficiency is where firms are maximising output from given inputs.
Similar Economics resources: