ECON 111 Lecture 9: economic efficency

• School: Queen's University
• Department: Economics
• Course: ECON 111
• Professor: Ugurhan Gazi Berkok

Document Summary

Efficiency works at different levels: product efficiency. A) firm level (economic efficiency) (i) no waste (ii) correct input proportions: allocative, efficiency of market forms. Technical efficiency at the firm level is no wastage, i. e. not using more than sufficient amounts of inputs to produce a given output. It can also refer to how productive a business can be given the fewest in puts or resources necessary to do the job. Economic efficiency is an economic state where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and efficiency. When an economy is economically efficient, any changes made to assist one entity would harm another. Allocative efficiency is a state of economy where production represents consumer preferences. Markets use scarce resources to make the products and provide the services that society demands and desires. A perfectly competitive market is a hypothetical market where competition is at its greatest possible level.