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. 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?

  • AR=AC
  • P=MC
  • AC=MC

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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davidsalter

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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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