Productive efficiency
What Productive efficiency means in Economics A-Level, as defined for AQA.
Definitions of Productive efficiency
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Reference: AQA
Producing at the lowest possible cost, represented by any point on the PPF boundary, where all resources are used to their maximum potential.
A long-run outcome achieved through the adoption of new technologies and economies of scale, lowering long-run average costs.
Where firms produce at the minimum average cost, moving closer to the lowest point on their long-run average cost curve.
Producing at the lowest point on the short-run or long-run average total cost curve, minimising unit costs.
A form of static efficiency involving producing at the lowest point on the short-run average cost curve.
Producing at the lowest point on the short-run and long-run average cost curves.
Topics that use Productive efficiency
- Market structure, static efficiency, dynamic efficiency (AQA A-Level)
- Perfect competition (AQA A-Level)
- Production possibility diagrams (AQA A-Level)
- Technological change (AQA A-Level)
- The dynamics of competition and competitive market processes (AQA A-Level)
Related terms
- Allocative efficiency
- Dynamic efficiency
- Barriers to entry
- Innovation
- Technological change
- Average revenue
- Capital investment
- Collusion
Using Productive efficiency in the exam
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