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 one of these should increase allocative efficiency?

  • Increased competition
  • Increased market share for a firm
  • Increased hit and run competition
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Other questions in this quiz

2. What is productive efficiency?

  • 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.
  • Productive efficiency is where firms are operating at the lowest point on the MR curve

3. What is static efficiency?

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

4. Where does productive efficiency occur?

  • AC=MC
  • P=MC
  • AR=MC

5. 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.

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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