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Production efficiency
Production efficiency









production efficiency

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production efficiency

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production efficiency

The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". Amazon has updated the ALB and CLB so that customers can continue to use the CORS request with stickness. This cookie is used for load balancing services provded by Amazon inorder to optimize the user experience. It does not correspond to any user ID in the web application and does not store any personally identifiable information. The cookie is used by cdn services like CloudFlare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. These cookies ensure basic functionalities and security features of the website, anonymously. Necessary cookies are absolutely essential for the website to function properly. For example, if you devoted 90% of GDP to defence, you could be productively efficient, but, this would be a very unbalanced economy. Note: An economy can be productively efficient but have very poor allocative efficiency.Īllocative efficiency is concerned with the optimal distribution of resources. cannot produce more of a good, without more inputs. A firm is technically efficient when it combines the optimal combination of labour and capital to produce a good. Productive efficiency is closely related to the concept of technical efficiency. Productive efficiency and short-run average cost curveĪ firm is said to be productively efficient when it is producing at the lowest point on the short run average cost curve (this is the point where marginal cost meets average cost). Point D is inefficient because you could produce more goods or services with no opportunity cost.Points A and B are productively efficient.it is impossible to produce more of one good without producing less of another). To be productively efficient means the economy must be producing on its production possibility frontier. Productive efficiency is concerned with producing goods and services with the optimal combination of inputs to produce maximum output for the minimum cost.











Production efficiency