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Topic: Allocative efficiency

Related Topics

Efficient market hypothesis

Pareto efficiency

Inefficiency

Externality

Welfare economics

Supply and demand

Monopoly

Scarcity

Microeconomics

Deadweight loss

Information asymmetry

Comparative advantage

Tjalling Koopmans

Monopoly

Natural monopoly

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	sociology - Allocative efficiency
		Allocative efficiency is the market condition whereby resources are allocated in a way that maximises the net benefit attained through their use.
		Allocative efficiency is also defined as the production of the quantity that is most beneficial to society.
		A firm is allocatively efficient when its price is equal to its marginal costs (that is, P = MC).
	www.aboutsociology.com /sociology/Allocative_efficiency (73 words)

	HSD/Allocative Efficiency - Key Topics
		Suggests that in market settings, there may be an inverse relationship between technical and allocative efficiency, with the former tending to improve and the latter to worsen (as a result of market-driven changes in the intervention mix).
		Found that concern for allocative efficiency and health maximization, as usually envisaged by economists, is not completely shared by the general population, and that a cost-effectiveness approach to setting resource allocation priorities may therefore impose an 'excessively simple value system' on the decision process.
		Is most useful vis-à-vis allocative efficiency for two things—its clear and simple introduction to the use of cost-effectiveness data in selecting between alternative interventions, and its summary of cost-effectiveness information for the six main categories of health-related interventions, specific details of which can be found in the textbook proper.
	wbln0018.worldbank.org /HDNet/hddocs.nsf/c840b59b6982d2498525670c004def60/37f1b0207cf04e3385256a9c0064002e?OpenDocument (7212 words)

	Externalities
		The conclusion which can be drawn from this is that true allocative efficiency will not be achieved unless the external benefits and costs associated with externalities are taken in to account when making economic analysis.
		Given the problems for allocative efficiency which are caused by the presence of externalities, what then are the possible solutions to correct these examples of market failure.
		Tradeable pollution rights can help achieve allocative efficiency as an increase or decrease in demand will be reflected in a change in the price of the rights,but the amount of pollution produced will not exceed the optimal level determined by the number of pollution rights available.
	www2.hunterlink.net.au /~ddhrg/econ/ext1.html (2675 words)

	Allocative Efficiency (Site not responding. Last check: )
		Allocative efficiency occurs when firms produce those goods and services most valued by society.
		Allocative efficiency in a given market involves comparing the cost of producing an extra unit – marginal cost - with the benefit gained from its consumption – marginal benefit.
		Identifying allocative efficiency involves comparing the cost of producing an extra unit with the benefit gained from its consumption.
	www.woodgreen.oxon.sch.uk /economics/allocative_efficiency.htm (284 words)

	Revision Guru
		Static efficiency exists at a point in time and focuses on how much output can be produced now from a given stock of resources and whether producers are charging a price to consumers that fairly reflects the cost of the factors of production used to produce a good or a service.
		Allocative efficiency is achieved when the value consumers place on a good or service (reflected in the price they are willing to pay) equals the cost of the resources used up in production.
		Allocative efficiency occurs when price = marginal cost, when this condition is satisfied, total economic welfare is maximised.
	www.revisionguru.co.uk /economics/comparing.htm (707 words)

	Cost Efficiency and Scope Economies of Crop and Livestock Farms in Missouri - Science - RedOrbit (Site not responding. Last check: )
		Lower cost efficiency in both types of farms was attributed to improper scale of operations and misallocation of inputs.
		The impact of hypothesized variables on efficiency measures is typically determined using a two-step procedure (e.g., Deller and Nelson) that involves measurement of efficiency scores and ordinary least-squares (OLS) regression analysis of the relationship between efficiency score and explanatory variables.
		Allocative efficiency varies among sample farms, with a mean level of allocative efficiency of \1.70.
	www.redorbit.com /news/science/815444/cost_efficiency_and_scope_economies_of_crop_and_livestock_farms/index.html?source=r_science (4925 words)

	Spartanburg SC \| GoUpstate.com \| Spartanburg Herald-Journal (Site not responding. Last check: )
		A firm is allocatively efficient when its price is equal to its marginal costs (that is, P = MC) in a perfect market.
		In the same way, an allocatively efficient market or firm is Pareto efficient - net benefit is maximized, therefore no individual can be made better off without another individual being made at least as worse off.
		When a market fails to achieve allocative efficiency and resources are not allocated efficiently, there is said to be market failure.
	www.goupstate.com /apps/pbcs.dll/section?category=NEWS&template=wiki&text=allocative_efficiency (365 words)

	Economic Theory: Allocative Efficiency
		Secondly, the economic meaning of efficiency is not the same as the scientific or engineering meaning, and should not be confused with efficiency in terms of thermodynamics, which also seems to take on a moral character.
		This brings us to the third, and probably most important, point about allocative efficiency: allocative efficiency being met only means that there is not someone who would be willing to trade goods with someone else in such a way as to increase the benefit that both feel.
		But it is still not even easy to achieve the lesser goal of allocative efficiency (lesser compared to achieving the socially optimal economic state), as there are numerous conditions that must be met for this to happen.
	www.cs.swarthmore.edu /~eroberts/cs91/projects/economic-pressures/allocative_efficiency.htm (449 words)

	Competition Bureau - Treatment of Efficiencies in the Competition Act - Appendix A (Site not responding. Last check: )
		Allocative efficiency is measured by the degree to which resources available to the economy are allocated to their most valuable use.
		The impact of a merger on allocative efficiency is measured by its impact on the sum of producers' and consumers' surplus (often called the deadweight loss).
		For example, a merger that reduces allocative efficiency (by increasing price) or productive efficiency (by increasing cost) but also increases dynamic efficiency by leading to increased innovation may redistribute income from current consumers to younger consumers who may not be consuming today but will demand new, innovative products in the future.
	www.competitionbureau.gc.ca /internet/index.cfm?itemID=1614&lg=e (3475 words)

	AgBioForum 5(1): Efficiency of Alternative Technologies and Cultural Practices for Cotton in Georgia
		Price (allocative) efficiency is the extent to which a firm uses the inputs in the best proportions, given their prices.
		The summary of allocative efficiency is presented in Table 1.
		Allocative efficiency ratings (not shown in Table 2), calculated by seed technology and tillage method, support the dominance of transgenics and strip tillage.
	www.agbioforum.org /v5n1/v5n1a03-ward.htm (1770 words)

	Competition and the efficient allocation of resources (Site not responding. Last check: )
		However, as already indicated, this theory stumbles on the fact that allocative efficiency is completely indifferent to questions of equity and fairness, and yet the challenge to capitalism comes from the desire for an equitable society.
		Secondly, it shall be shown later that allocative efficiency is only achieved where markets operate according to the model of perfect competition.
		Any existence of market failure, that is, any process that means that a market is unable to achieve allocative efficiency, results in a counterargument against the assumption that competition increases the welfare for all.
	www.blacks.veriovps.co.uk /content/3391.html (320 words)

	Antitrust Review » The Goals of Antitrust and Economic Policy: Consumer Welfare? Efficiency? Perfect Competition?
		Efficiency is another positive, for which each camp claims to have the monopoly.
		Allocative efficiency is realized, when all mutually beneficial trades have been made, and all goods are in the hands of those who value them most.
		Productive efficiency ensures that whatever is being made is produced in the most efficient manner, that is, no change in the mix of inputs would result in increased output, given the current technological constraints.
	www.antitrustreview.com /archives/55 (1507 words)

	Health Economics on the web
		Allocative efficiency: resources be used to produce the types and amounts of outputs which best satisfy people, i.e., which people value most highly.
		It is possible for an allocation of resources to be both technically efficient and cost-effective but allocatively inefficient if producers are supplying too much or too little of a good or service relative to consumers' wishes.
		Allocative efficiency involves value judgements about what criteria will be used to judge whether a particular resource allocation is optimal.
	web.hku.hk:8400 /~hkhea/policy.html (689 words)

	Economic Efficiency
		The second measure of economic efficiency, known as allocative efficiency, refers to the efficient distribution of productive resources among alternative uses so as to produce the optimal mix of output.
		Allocative efficiency thus involves an interaction between the productive capacity and consumption activity of society.
		In contrast to productive efficiency and allocative efficiency, dynamic efficiency is a much less precise concept with no universally agreed upon formal definition.
	www.dekker.com /sdek/128374897-46270411/abstract~db=enc~content=a713481584 (456 words)

	The Road Not Taken, By Francis J. Cronin and Stephen A. Motluk, March 2004
		Allocative inefficiency is benchmarked by using total cost comparisons, not just data on changes in output/input ratios.
		Third, we find significant differences in calculated efficiency between the partial-cost approach and one based on total costs, which produces a better estimate of both technical and allocative efficiency.
		Allocative efficiency refers to the mix of inputs selected, given their relative prices.
	www.pur.com /pubs/4343.cfm (2522 words)

	Allocative efficiency Summary
		Allocative efficiency is the market condition whereby resources are allocated in a way that maximises the net benefit attained through their use.
		Allocative efficiency refers to a situation in which the limited resources of a country are allocated in acc...
		Get the complete Allocative efficiency Summary Pack, which includes everything on this page.
	www.bookrags.com /Allocative_efficiency (115 words)

	ECONOMIC EFFICIENCY
		Allocative efficiency occurs where price is equal to marginal cost (P=MC), because price is society’s measure of relative worth of a product at the margin or its marginal benefit.
		Allocative efficiency is not achieved because price (what product is worth to consumers) is above marginal cost (opportunity cost of product).
		Allocative efficiency is improved when technological advance involves a new product that increases the utility consumers can obtain from their limited income.
	staffwww.fullcoll.edu /fchan/Micro/4economic_efficiency.htm (637 words)

	Unit 3 Chapter 13 Notes: types of economic efficiency (Site not responding. Last check: )
		There are two types of economic efficiency: productive efficiency and allocative efficiency.
		Allocative efficiency involves producing the goods and services most preferred by consumers.
		Allocative efficiency is achieved only in perfect competition, again, assuming no externalities, because only there does p = MC.
	openet.ola.bc.ca /econ200/unit3s-micro/chapter13/C13efficiency.html (186 words)

	Efficiency Evaluation of Singapore Hospitals
		Technical efficiency is concerned about (1) possible increase in output for a given set of inputs or (2) possible decrease in inputs to produce a given set of outputs; while allocative efficiency is concerned about (1) the optimal mix of inputs for observed outputs or (2) the optimal mix of outputs for observed inputs.
		DEA is a linear programming model that attempts to maximize a service unit's efficiency, expressed as a ratio outputs to inputs, by comparing a particular unit's efficiency with the performance of a group of similar service units delivering the same service.
		Efficient frontier is constructed for each window, which can be presented graphically to render intuitive recognition of progress in operation efficiency in the whole industry over time.
	web.singnet.com.sg /~zhizun/proposal.htm (3088 words)

	Economic Efficiency [ Biz/ed Virtual Developing Country ]
		In this case productive efficiency occurs at the optimum scale of output where all the possible economies of scale have been enjoyed and the firm is not large enough to experience diseconomies of scale.
		Allocative efficiency is where the countries' firms are producing a combination of goods that maximises the overall level of satisfaction or welfare of the population.
		Allocative efficiency occurs where a countries resources are allocated in such as way that it is impossible to reallocate factors of production and further increase welfare.
	www.bized.co.uk /virtual/dc/copper/theory/th4.htm (840 words)

	Vernimmen - Definition of Allocative efficiency - Finance dictionary
		Allocative efficiency (See Chapter 15 of the Vernimmen)
		Allocative efficiency of a financial system implies that markets channel resources to their most productive uses.
		Definitions of terms begining with the same letter as "Allocative efficiency" :
	www.vernimmen.com /html/glossaire/definition_allocative_efficiency.html (181 words)

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