What is allocative efficiency?

• The optimal allocation of resources given the available technology.

• Maximizing output using the available inputs.

• Minimizing wastage and maximizing output.

What is productive efficiency?

• The optimal allocation of resources given the available technology.

• Maximizing output using the available inputs.

• Minimizing wastage and maximizing output.

What does achieving allocative efficiency require?

• Perfect information and rational consumers.

• Streamlining processes and investing in new technology.

• Minimizing wastage and maximizing output.

How can businesses maximize their chances of achieving allocative efficiency?

• Understanding customer needs and preferences.

• Adopting new technology and training employees.

• Streamlining processes and setting realistic prices.

What does achieving productive efficiency in a business mean?

• Using the minimum amount of inputs to produce a given output level.

• Allocating resources optimally given the available technology.

• Understanding customer needs and preferences.

How can businesses achieve productive efficiency?

• Understanding customer needs and preferences.

• Streamlining processes and investing in new technology.

• Setting realistic prices and training employees.

Why are both allocative and productive efficiency important for businesses?

• They help optimize resource use and increase profits.

• They reduce costs and improve customer satisfaction.

• They minimize wastage and improve production processes.

What is the significance of perfect information in achieving allocative efficiency?

• It helps businesses make informed decisions about resource allocation.

• It maximizes output using the available inputs.

• It minimizes wastage and maximizes output.

How can understanding customer needs and preferences contribute to achieving allocative efficiency?

• It helps businesses make informed decisions about resource allocation.

• It maximizes output using the available inputs.

• It minimizes wastage and maximizes output.

How does investing in new technology help achieve productive efficiency?

• It helps businesses make informed decisions about resource allocation.

• It maximizes output using the available inputs.

• It minimizes wastage and maximizes output.