What are 5 ways of measuring efficiency
Allocative efficiency in simple terms is achieved when resources are allocated in such a way that the needs and wants of consumers are satisfied. ... Productive efficiency is the idea that maximum output can be made from the lowest possible input. ... Dynamic Efficiency occurs when the firms are responsive to the needs and wants of consumers. ... Static efficiency occurs at a point In time an example of this would be whether a car company could produce 1 million cars a year more cheaply by using labour and less capital. Technical Efficiency occurs when firms can become more efficient by the introduction of new technology. For example automated production lines can bring firms efficiency contrasting the use of manual labour. Allocative efficiency in simple terms is achieved when resources are allocated in such a way that the needs and wants of consumers are satisfied.