Question: What is the difference between productive efficiency and allocative efficiency?

What is the difference between productive efficiency and allocative efficiency?

Step by Step Solution

★★★★★

3.45 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Productive efficiency occurs when a good or service is produced a... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1347-B-A-A-M-E(17).docx

120 KBs Word File

Students Have Also Explored These Related Micro Economics Questions!

Q:

Define and distinguish between productive efficiency and allocative efficiency.

Q:

In long-run equilibrium, P = minimum ATC = MC. Of what significance for economic efficiency is the equality of P and minimum ATC? The equality of P and Me? Distinguish between productive efficiency...

Q:

In long-run equilibrium, P = minimum ATC = MC. Of what significance for economic efficiency is the equality of P and minimum ATC? The equality of P and MC? Distinguish between productive efficiency...

Q:

Question 1 ( 6 marks ) Using all information provided, complete the following table. It would be easier if you set this up in an Excel spreadsheet. When you are done, please insert it into a Word...

Q:

Managerial Economics) This exam consists of 10 questions. Each one of them is worth 5 points, for a total of 50 points. Quantity Demanded Price (in $) Quantity Supplied 2 $200 9 4 $150 7 6 $100 6 8...

Q:

BECN 150 Assignment 2 Summer 2023 This assignment is marked out of 20 and is worth 10% of your final mark. Learning Outcomes The learner will be able to: Given a specific business situation,...

Q:

Discussion Question: Choose one of the below discussion topics and respond to this forum. 1. Why are individual buyers and sellers in perfect competition called price takers? Why can't an individual...

Q:

What is the difference between productive efficiency and allocative efficiency?

Q:

Assignment 2 Summer 2022 A company produces designer shirts. The cost per shirt is: Materials $10.00 Packaging $.1.50 Design on shirt $5.00 Shipping and handling $3.50 Each worker earns $15,000...

Q:

1.Productive efficiency for an individual firm requires that a.all resources be fully used. b.MC = P for all goods. c.the firm be on its LRAC curve. d.the firm be allocatively efficient. e.P = ATC...

Q:

A study of 86 savings and loan associations in six northwestern states yielded the following cost function. C C = 3.41 - 0.007384 Q Q + 0.000005359 Q 2Q2 + 23.0 X 1X1 (3.41) (2.84) (3.16) (3.23)...

Q:

Jarl Company issued 8%, 8-year, $1,000,000 par value bonds that pay interest semiannually on October 1 and April 1. The bonds are dated April 1, 2014, and are issued on that date. The discount rate...

Q:

A contractor agrees to inflate the estimate for repair of damages to a client s home so the client does not have to pay his $ 1 , 0 0 0 homeowners insurance deductible. This is an example of:

Q:

3 Suppose the average annual market-clearing rent for a two-bedroom apartment has been $900 per month, and rents were expected to increase to $1,200 within a year.

Q:

a. How to solve for the current price of the bonds b. How to find the percentage at which the price of the bonds increase between this time frame Lance Whittingham IV specializes in buying deep...

Q:

show work....Assume that the average firm in your company's industry is expected to grow at a constant rate of 5 percent, and its dividend yield is 4 percent. You company is about as risky as the...

Q:

Illustration.1. Mr. Abdullah manufacturer of cement requested to Meezan bank Islamabad on January 1st2010, to issue cash for purchase of raw material amounting to Rs; 2 million for supply of 8,000...