where are the technically efficient and inefficient regions?

Expert Solution

Let us get to the definition of the term "Technical efficiency". It is defined by the ratio between the observed output and the maximum output, under the assumption of fixed input, or, alternatively, as the ratio between the observed input and the minimum input under the assumption of fixed output.

Hence those points which lie on the production frontier are known as the technically efficient regions. These are the points in the production which are providing maximum output with minimum input. A firm can have various combinations of technically efficient combinations.

The regions which are below the production possibility curve are the technically inefficient regions. The points within the region between the curve and the two axis are known as the technically inefficient regions. At this point there is either underutilization of resource or the input is not giving the desired output.

You can see the technical efficient and inefficient region here :

Rahul Sunny answered 1 year ago

3. A change from a technically or productively inefficient mix to an efficient mix of output...

3. A change from a technically or productively inefficient mix to an efficient mix of output would BEST be represented with a production possibilities frontier (PPF) as a a) movement from inside the PPF onto the PPF. b) movement from a point on the PPF to a point inside the PPF. c) shift outward of the PPF. d) shift inward of the PPF. 4. If one country has a(n) _____ advantage in the production of one item, it can always...

5 markets that are efficient and why they are efficient and 5 that are inefficient and...

5 markets that are efficient and why they are efficient and 5 that are inefficient and why they are inefficient

A technically efficient economy is one that strives to eliminate scarcity True or false

Reason(s) sales tax is efficient or inefficient (focus: comparing deadweight loss, the efficient outcome of the...

Reason(s) sales tax is efficient or inefficient (focus: comparing deadweight loss, the efficient outcome of the competitive model, and loss of production to society).

What is the efficiency of the most efficient combustion engine? Explain why it is so inefficient....

What is the efficiency of the most efficient combustion engine? Explain why it is so inefficient. How does the efficiency of an electric motor compare with an internal combustion engine? If this were the selling feature for an electric car, explain why this is terribly misleading.

Epigenetics and Stem Cells: Is the conversion of differentiated cells back to pluripotency efficient or inefficient...

Epigenetics and Stem Cells: Is the conversion of differentiated cells back to pluripotency efficient or inefficient and why?

It has been shown empirically that efficient firms tend to export and inefficient firms tend to...

It has been shown empirically that efficient firms tend to export and inefficient firms tend to sell in the domestic market exclusively. Explain this with graph

Are privately operated prisons efficient or inefficient? Give an explanation of your answer based on economics.

Do you believe that global markets are efficient or inefficient or some combination? Defend your position.

1 Describe how the health insurance market has been inefficient, historically how they can be efficient...

1 Describe how the health insurance market has been inefficient, historically how they can be efficient when coverage is lacking. 2 Include information on alternative measures of equity, How will health care reform address these inefficiencies? 3 Take on the extra-welfarist approach and comment on the information from that perspective.

Question