The two efficiencies included at the point of achieving total efficiency are:

Question

Quizplus · Accepted Answer

The two efficiencies included at the point of achieving total efficiency are technical efficiency and allocative efficiency. Technical efficiency is achieved when a company produces the maximum output possible with the given inputs and technology. Allocative efficiency is when a firm produces the optimal quantity and mix of products that are most desired by consumers, and where marginal cost is equal to marginal revenue. Both technical and allocative efficiency are important for a company to achieve total efficiency, which is the point where the company is producing at the lowest cost possible while also producing the goods and services that are most desired by consumers.

The Two Efficiencies Included at the Point of Achieving Total