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In addition to the context of efficiency in allocation, the concept of Pareto efficiency also arises in the context of efficiency in production vs. x-inefficiency: a set of outputs of goods is Pareto-efficient if there is no feasible re-allocation of productive inputs such that output of one product increases while the outputs of all other ...
Allocative efficiency is a state of the economy in which production is aligned with the preferences of ... In view of the Pareto efficiency measurement method, it is ...
When drawing diagrams for businesses, allocative efficiency is satisfied if output is produced at the point where marginal cost is equal to average revenue. This is the case for the long-run equilibrium of perfect competition. Productive efficiency occurs when units of goods are being supplied at the lowest possible average total cost.
Efficiency notions: Pareto-efficiency, graph Pareto-efficiency (where Pareto-domination considers only exchanges between neighbors on a fixed graph), and group-Pareto-efficiency. An allocation X as k-group-Pareto-efficient (GPE k ) if there is no other allocation Y that is at least as good (by arithmetic mean of utilities) for all groups of ...
Efficient cake-cutting is a problem in economics and computer science. It involves a heterogeneous resource, such as a cake with different toppings or a land with different coverings, that is assumed to be divisible - it is possible to cut arbitrarily small pieces of it without destroying their value.
Pareto efficiency, a state of its being impossible to make one individual better off, without making any other individual worse off; Kaldor-Hicks efficiency, a less stringent version of Pareto efficiency; Allocative efficiency, the optimal distribution of goods; Efficiency wages, paying workers more than the market rate for increased productivity
This equilibrium would be a Pareto optimum. [1] Perfect competition provides both allocative efficiency and productive efficiency: Such markets are allocatively efficient, as output will always occur where marginal cost is equal to average revenue i.e. price (MC = AR).
In the case of two goods and two individuals, the contract curve can be found as follows. Here refers to the final amount of good 2 allocated to person 1, etc., and refer to the final levels of utility experienced by person 1 and person 2 respectively, refers to the level of utility that person 2 would receive from the initial allocation without trading at all, and and refer to the fixed total ...