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- Productive_efficiency abstract "Productive efficiency is a situation in which the economy could not produce any more of one good without sacrificing production of another good. The concept is illustrated on a production possibility frontier (PPF), where all points on the curve are points of productive efficiency. An equilibrium may be productively efficient without being allocatively efficient— i.e. it may result in a distribution of goods where social welfare is not maximized.Productive efficiency requires that all firms operate using best-practice technological and managerial processes. By improving these processes, an economy or business can extend its production possibility frontier outward, so that efficient production yields more output than previously.Productive inefficiency, with the economy operating below its production possibilities frontier, can occur because the productive inputs physical capital and labor are underutilized—that is, some capital or labor is left sitting idle—or because these inputs are allocated in inappropriate combinations to the different industries that use them.In long-run equilibrium for perfectly competitive markets, productive efficiency occurs at the base of the average total cost curve—i.e. where marginal cost equals average total cost—for each good.Due to the nature and culture of monopolistic companies, they may not be productively efficient because of X-inefficiency, whereby companies operating in a monopoly have less of an incentive to maximize output due to lack of competition. However, due to economies of scale it can be possible for the profit-maximizing level of output of monopolistic companies to occur with a lower price to the consumer than perfectly competitive companies.".
- Productive_efficiency thumbnail Production_Possibilities_Frontier_Curve.svg?width=300.
- Productive_efficiency wikiPageID "3284517".
- Productive_efficiency wikiPageLength "2555".
- Productive_efficiency wikiPageOutDegree "16".
- Productive_efficiency wikiPageRevisionID "680526979".
- Productive_efficiency wikiPageWikiLink Allocative_efficiency.
- Productive_efficiency wikiPageWikiLink Average_cost.
- Productive_efficiency wikiPageWikiLink Category:Economics.
- Productive_efficiency wikiPageWikiLink Category:Management.
- Productive_efficiency wikiPageWikiLink Economy.
- Productive_efficiency wikiPageWikiLink Labor.
- Productive_efficiency wikiPageWikiLink Labour.
- Productive_efficiency wikiPageWikiLink Long-run_equilibrium.
- Productive_efficiency wikiPageWikiLink Long_run_and_short_run.
- Productive_efficiency wikiPageWikiLink Perfect_competition.
- Productive_efficiency wikiPageWikiLink Physical_capital.
- Productive_efficiency wikiPageWikiLink Production_possibility_frontier.
- Productive_efficiency wikiPageWikiLink Production–possibility_frontier.
- Productive_efficiency wikiPageWikiLink Social_welfare.
- Productive_efficiency wikiPageWikiLink Welfare.
- Productive_efficiency wikiPageWikiLink X-inefficiency.
- Productive_efficiency wikiPageWikiLink File:Production_Possibilities_Frontier_Curve.svg.
- Productive_efficiency wikiPageWikiLink File:Productive_efficiency.svg.
- Productive_efficiency wikiPageWikiLinkText "Productive efficiency".
- Productive_efficiency wikiPageWikiLinkText "Productive inefficiency".
- Productive_efficiency wikiPageWikiLinkText "efficient".
- Productive_efficiency wikiPageWikiLinkText "productive efficiency".
- Productive_efficiency wikiPageWikiLinkText "productive".
- Productive_efficiency wikiPageWikiLinkText "productively efficient".
- Productive_efficiency wikiPageWikiLinkText "working efficiency".
- Productive_efficiency hasPhotoCollection Productive_efficiency.
- Productive_efficiency wikiPageUsesTemplate Template:Refimprove.
- Productive_efficiency wikiPageUsesTemplate Template:Reflist.
- Productive_efficiency subject Category:Economics.
- Productive_efficiency subject Category:Management.
- Productive_efficiency hypernym Situation.
- Productive_efficiency type Article.
- Productive_efficiency type ProgrammingLanguage.
- Productive_efficiency type Article.
- Productive_efficiency type Science.
- Productive_efficiency comment "Productive efficiency is a situation in which the economy could not produce any more of one good without sacrificing production of another good. The concept is illustrated on a production possibility frontier (PPF), where all points on the curve are points of productive efficiency. An equilibrium may be productively efficient without being allocatively efficient— i.e.".
- Productive_efficiency label "Productive efficiency".
- Productive_efficiency sameAs Eficiencia_productiva.
- Productive_efficiency sameAs Eficiência_produtiva.
- Productive_efficiency sameAs m.09393d.
- Productive_efficiency sameAs Productive_efficiency.
- Productive_efficiency sameAs Q7247859.
- Productive_efficiency sameAs Q7247859.
- Productive_efficiency wasDerivedFrom Productive_efficiency?oldid=680526979.
- Productive_efficiency depiction Production_Possibilities_Frontier_Curve.svg.
- Productive_efficiency isPrimaryTopicOf Productive_efficiency.