society can achieve either productive efficiency or allocative efficiency, but not both simultaneously
no difference
Allocative efficiency is the concept in economics where manufacturers and service providers only produce those goods and services which are in high demand and the most desirable to the consumer.
allocative efficancy productive efficancy
Both allocative and productive efficiency
society can achieve either productive efficiency or allocative efficiency, but not both simultaneously
no difference
Allocative efficiency is the concept in economics where manufacturers and service providers only produce those goods and services which are in high demand and the most desirable to the consumer.
allocative efficancy productive efficancy
Both allocative and productive efficiency
Allocative efficiency is an output level where the price equals the marginal cost of production. This is because the price that consumers are willing to pay is equivalent to the marginal utility that they get. Therefore the optimal distribution is achieved when the marginal utility of the good equals the marginal cost.
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.
It is the particular mix of goods and service most highly valued by society (minimum-cost production assumed).
Jan K. Bueckner has written: 'Public intermediate inputs, property value, and allocative efficiency'
True
produces ideal results in terms of low-cost production and allocative efficiency, and can be used as a basis of comparison.
Allocative efficiency since the industry is producing the amount of product that equates society's valuation of that product and the price of the product.