productive efficiency


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Fig. 157 Productive efficiency. In the graph, which assumes a long-run AVERAGE COST CURVE that is U-shaped, plant size OA results in minimum cost. If plant sizes are suboptimal (OB), or if optimal-sized plants (OA) are underutilized because of a shortfall in demand (OX), then actual supply costs will be higher than attainable costs.

productive efficiency

an aspect of MARKET PERFORMANCE that denotes the efficiency of a market in producing current products at the lowest possible cost in the long run, using existing technology. Productive efficiency is achieved when output is produced in plants of optimal scale and when there is a long-run balance of market supply and demand. See Fig. 157 . See also MINIMUM EFFICIENT SCALE, TECHNOLOGICAL PROGRESSIVENESS, EXCESS CAPACITY, RATIONALIZATION.
References in periodicals archive ?
In particular, if all firms are assumed to be symmetric, competition cannot enhance productive efficiency via selection.
Evidence of productive efficiency gains and allocative efficiency losses are generally mixed.
The use of this supplementary information in a standardized form facilities the estimation of productive efficiency and potential, which provide a useful basis for sound plan decision making.
The pollution level in an industry is really a measure of its productive efficiency, the higher the pollution level, the lower the productive efficiency.
To improve productive efficiency and to reduce costs in Indian industry the author advocates a gradual relaxation of import controls and a reduction in the effective degree of protection along with a liberal approach to induction of technology from abroad.
: Provision of a system of application of the protective transparent on the registration plates for the purpose of environmental and productive efficiency, To be carried out at the ipzs factory in foggia.
The ministry's statement pointed to the strengthening of the value added chain, development of the productive efficiency and competitiveness of national industrial products in the internal and external market as well as raising of capability building of the workforce in the sector.
bottom-up benchmarking in natural monopoly regulation in a case involving Chile and the UK, labor productivity change estimates as an input for X-factors, efficient firm standards in Chilean monopoly regulation, estimation of productive efficiency based on non-parametric techniques in the case of electricity distribution in Argentina, a distance function approach in the case of the evolution of Mexico's port efficiency, computable general equilibrium models applied to regulatory economics and the effective of competition policy in Argentina, Chile and Peru in the 1990s.
The answer is that surveys carried out by Nose (the Nonsense School of Economics) ( which counts a great many bureaucrats and senior politicians among its alumni ( demonstrate that surrounding businesses with many new and complicated regulations has absolutely no effect on productive efficiency.
While productive efficiency considerations argue in favor of early licensing, delays in the granting of patent rights induce an informational asymmetry between the inventor and potential licensees.
Four criteria that have been suggested to evaluate the effects of private schooling and education vouchers are: (1) freedom of choice; (2) productive efficiency; (3) equity; and (4) social cohesion.
Indeed, in the debates of the 1980s over the purposes of antitrust, almost all participants recognized efficiency (including both allocative efficiency and productive efficiency) as a principal goal of the law; the debate was over whether efficiency concerns exhausted the law's purposes or whether the law also was concerned with some nonefficiency issues, such as the dispersion of economic power and the distribution of income.(31)