Sajitha posted an Question
September 14, 2020 • 17:38 pm 30 points
  • UGC NET
  • Management

If 100% scale efficient plant has 90% technical efficiency and 85% allocative-efficiency, then its overall efficiency will be:

if 100% scale efficient plant has 90% technical efficiency and 85% allocative-efficiency, then its overall efficiency will be:

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  • Kalai best-answer

    Allocative efficiency (an economic concept) refers to how different resource inputs are combined to produce a mix of different outputs. Technical efficiency on the other hand is concerned with achieving maximum outputs with the least cost. Overall efficiency measures the combined effect of allocative and technical efficiency. thus the product of technical and allocative efficiency is overall efficiency.

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