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3.4.1 Efficiency
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Static and Dynamic Efficiency

Static and Dynamic Efficiency

Efficiency describes how well scarce resources are used. Static efficiency is judged at a single point in time and includes allocative efficiency, which occurs where P=MCP = MCP=MC, and productive efficiency, which occurs at the minimum point of the ACACAC curve. At this minimum, the MCMCMC curve crosses the ACACAC curve from below: MCMCMC lies below ACACAC before the minimum and above ACACAC after it.

3.4.1 Efficiency Lesson

  1. A Level
  2. /Economics
  3. /3.4.1 Efficiency

Step-by-step lessons covering Edexcel A A Level Economics 3.4.1 Efficiency for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.