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. What is static efficiency?

  • Static efficiency occurs in a single time period e.g. efficiency now
  • Static efficiency occurs over time
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Other questions in this quiz

2. 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.

3. 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.

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. Improving products helps a firm gain or at least retain ______ in the face of competition

  • Market share
  • Profit
  • Revenue

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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