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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.
How does under utilisation or efficiency shown on a PPC?
Underutilization on a Production Possibility Curve (PPC) is represented by points inside the curve, indicating that an economy is not producing at its full potential. This inefficiency may arise from factors such as unemployment, underemployment, or misallocation of resources. In contrast, points on the curve signify efficient production, where resources are fully utilized. Thus, the area within the curve highlights the gap between actual output and potential output.
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 do you produce with limited resources?
With limited resources, I focus on producing high-impact, efficient solutions that prioritize essential needs. This often involves creative problem-solving, leveraging existing tools and materials, and fostering collaboration to maximize output. By emphasizing quality over quantity and strategic resource allocation, I can achieve meaningful results even in constrained environments.
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 does economising of resources means?
it means optimum utilisation of resources or efficient management of resources as to maximise output.
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 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.
When output is less than the efficient level?
When output is less than the efficient level, the amount consumers are willing to pay equals the cost of production. the cost of production is greater than the price consumers are willing to pay. the marginal cost of producing the good must be greater than the marginal benefit from the good.
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.
How does under utilisation or efficiency shown on a PPC?
Underutilization on a Production Possibility Curve (PPC) is represented by points inside the curve, indicating that an economy is not producing at its full potential. This inefficiency may arise from factors such as unemployment, underemployment, or misallocation of resources. In contrast, points on the curve signify efficient production, where resources are fully utilized. Thus, the area within the curve highlights the gap between actual output and potential output.
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 Efficient scale?
Scale efficiency is the potential productivity gain from achieving optimal size of a firm
While producing less then the competitive output decreases social welfare. Can it be said about producing more than the competitive output?
Yes
What does highly efficient mean?
Highly efficient refers to a process, system, or individual that can achieve maximum output with minimum wasted effort or resources. It implies the ability to complete tasks quickly, accurately, and with minimal errors.
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
Why there is need for economising of resources?
Economising resources is necessary to ensure their sustainable use for future generations. Resources are limited and finite, so efficient allocation and use of resources help to avoid scarcity, reduce waste, and minimize environmental impacts. Economising resources also promotes economic efficiency and helps to optimize production and consumption patterns.
