Static efficiency
What Static efficiency means in Economics A-Level, as defined for AQA.
Definitions of Static efficiency
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Static efficiency in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Occurs at a specific point in time and encompasses allocative efficiency and productive efficiency, focusing on the optimal allocation of existing resources.
Achieved by firms in perfect competition in the long run, producing where price equals marginal cost and at the lowest point on the average cost curve.
Topics that use Static efficiency
- Market structure, static efficiency, dynamic efficiency (AQA A-Level)
Related terms
- Allocative efficiency
- Capital investment
- Collusion
- Conduct
- Dynamic efficiency
- Firm performance
- Innovation and technology
- Market structures
Using Static efficiency in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge