Economics A-Level
X-inefficiency
What X-inefficiency means in Economics A-Level, as defined for AQA.
Definitions of X-inefficiency
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Reference: AQA
Arises from a lack of competitive pressure, resulting in inflated average costs and organisational slack.
A risk in public ownership arising from the lack of competition and the absence of the profit motive.
Topics that use X-inefficiency
- Monopoly and monopoly power (AQA A-Level)
- Public ownership, privatisation, regulation and deregulation of markets (AQA A-Level)
Related terms
- Monopoly power
- Allocative efficiency
- Allocative inefficiency
- Asymmetric information
- Economic performance
- Economies of scale
- Efficiency
- Government failure
Using X-inefficiency in the exam
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