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.



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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