Efficiency

Question 1

Monopoly of Microsoft in the 90’s

Answer 1

Microsoft controls 90% of computer

Question 2

What is productive efficiency

Answer 2

When average cost is at its lowest

Question 3

When does MC= AC

Answer 3

at productive efficiency

Question 4

What is allocative efficiency

Answer 4

when welfare is maximised

Question 5

Point of allocative efficiency on a diagram

Answer 5

MC=AR

Question 6

X inefficiency

Answer 6

When costs of production is voce AC curve

Question 7

Static effencies

Answer 7

efficiency at one point at time

Question 8

Dynamic efficience

Answer 8

changing technology improves a firms output and this enabled because SN profit has allowed forms to invest in new tech