ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Production efficiency is an economic term describing a level at which an economy or entity can no longer produce additional amounts of a good without lowering the production level of another product.

Detailed explanation-2: -Economic efficiency is when all goods and factors of production in an economy are distributed or allocated to their most valuable uses and waste is eliminated or minimized.

Detailed explanation-3: -Economists usually distinguish between three types of efficiency: allocative efficiency; productive efficiency; and dynamic efficiency.

Detailed explanation-4: -The definition is “the ability to do something or produce something without wasting materials, time or energy.” This means that efficiency is often expressed by a percentage, with 100% being the ideal target with maximum efficiency so goods are produced at the lowest average total cost, with all else being constant.

Detailed explanation-5: -Allocative efficiency. This occurs when the price of a good or service equals the marginal cost of producing it. Productive efficiency. Technical efficiency. Dynamic efficiency. Social welfare efficiency. 03-May-2021