What students need to learn:
Content

Students should be able to:

Additional Guidance Notes

Productive and
allocative efficiency

Understand and distinguish between productive and allocative
efficiency.

Students will be required to know that the minimum point on the
average total cost is the most productively efficient point and that
allocative efficiency occurs where price is equal to marginal cost.
Students should also understand the meaning of inefficiency eg,
xinefficiency.
