Week 5 Flashcards
(8 cards)
What is Dynamic Efficiency?
The productive evidence of a firm over a period of time
What is Productive Efficiency?
Producing goods and services with optimal combination of input to produce maximum output for the minimum cost
What is a Externality?
When a third party who isn’t involved in the decision is affected.
Positive- external benefit
Negative- external cost
What is Imperfect information?
Where their is an imbalance of knowledge between the supplier of a good and the consumer
What is the Free rider problem
When people receive benefits towards service without paying anything towards out
Demerit good
Good or service which is considered unhealthy, damaging or socially undesirable
What is Market capitalisation?
market cap
Value of all company shares
What is Economies of scale?
A firm produces more product at a lower average cost
