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What is the most efficient combination of resources in producing any output?
Wiki User
∙ 11y ago
The most efficient combination would be one which uses the smallest total quantity of all resources
Wiki User
∙ 11y ago
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Why monopoly is inefficient and perfect competition efficient?
It is assumed that they are producing on the lowest point of their Average Total Cost curves, therefore producing the maximum possible output from available inputs and so productively efficient. They are also allocatively efficient because Price is equal to Marginal Cost.
What is considered an optimal mix of output?
The optimal mix of output is known in economics as the most desirable combination of output attainable with available resources, technology, and social values.
What is productive efficiency in economics?
Productive efficiency (also known as technical efficiency) occurs when the economy is utilizing all of its resources efficiently, producing most output from least input
Productivity is an important tool for managers as it helps them to track progress towards the more efficient use of resources in producing goods and services Elucidate?
Productivity may be defined as output produced per unit of input resources used. It is more a measurement of efficiency and performance of work managed rather than a tool of management. Improvement in productivity and that in efficient use of resources, may be considered one and the same thing. However we may use measurements of productivity as a means of setting targets for and monitoring efficiency and performance. This definitely helps in inproving efficiency. In this way planning and monitoring of productivity can be considered an useful tool for improving efficiency.
What is allocative efficiency and productive efficiency?
Allocative and productive efficiencies are theoretical concepts in economics. Allocative efficiency is achieved in an economy when the distribution or apportionment of resources produces the greatest utility for consumers through its combination of products. For example, and for the sake of simplicity, envision an economy with two products: pizza and robots. In an allocatively-efficient economy, businesses are producing the right amount of each product to make consumers happy. Productive efficiency, on the other hand, is when an economy is using all of its resources efficiently, producing the greatest output for the smallest input. Productive efficiency, on a production possibility frontier, occurs on any points along the curve.
What does economising of resources means?
it means optimum utilisation of resources or efficient management of resources as to maximise output.
Why there is need for economising of resources?
Economising of resources means optimum uses of resources or efficient management of resources. so in order to get maximum output there is a need for economising of resources.
What does the law of increasing cost explain?
The law of increasing cost explains that as production increases, the opportunity cost of producing additional units of a good also increases. This is because resources are not equally efficient in producing all goods, and as more of one good is produced, resources are shifted from their most efficient use to less efficient uses.
Why monopoly is inefficient and perfect competition efficient?
It is assumed that they are producing on the lowest point of their Average Total Cost curves, therefore producing the maximum possible output from available inputs and so productively efficient. They are also allocatively efficient because Price is equal to Marginal Cost.
What does it mean if a machine is efficient?
An efficient machine is one that can produce the desired output with minimal wasted resources, such as time, energy, or materials. Efficiency is measured by how well a machine can convert inputs into outputs while maximizing output and minimizing waste.
What is considered an optimal mix of output?
The optimal mix of output is known in economics as the most desirable combination of output attainable with available resources, technology, and social values.
When output is less than the efficient level?
When output is less than the efficient level, it indicates that resources are being underutilized or not allocated optimally. This can result in lower productivity, higher costs, and lower overall efficiency of production processes. It is important for businesses to identify and address this issue to maximize output and profits.
While producing less then the competitive output decreases social welfare. Can it be said about producing more than the competitive output?
Yes
What is efficiency in economics?
Productive efficiency (also known as technical efficiency) occurs when the economy is utilizing all of its resources efficiently, producing most output from least input
What is productive efficiency in economics?
Productive efficiency (also known as technical efficiency) occurs when the economy is utilizing all of its resources efficiently, producing most output from least input
What is the different between effective and efficient in using?
Effective means accomplishing the intended result. Efficient adds the sense of accomplishing the intended result with the minimum waste or effort. Efficiency refers to doing things in a right manner. Scientifically, it is defined as the output to input ratio and focuses on getting the maximum output with minimum resources. Effectiveness, on the other hand, refers to doing the right things. It constantly measures if the actual output meets the desired output.
How is efficiency attained in the ppf?
Efficiency on a production possibility frontier (PPF) occurs when resources are allocated to their most productive use. This means that all available resources are utilized fully and there is no waste. Any point on the PPF represents an efficient allocation of resources because it shows the maximum possible output that can be produced with the given resources.
