What is the difference between productivity and efficiency?
While efficiency and productivity are often confused, the two have vastly different meanings when it comes to getting your work done.EFFICIENCYBeing efficient means you are working in a well-organized and competent way. With so many things to do, it is easy to get bogged down with efficiently completing tasks on your to-do list. If nothing else, every time you cross an item off your list, you get a little endorphin rush.Much like sugary, sweet candies, it seems like a good idea when you’re doing it. It’s only later, when the important and meaningful work has not been accomplished (or you’ve put on some weight and ended up with a few cavities) that you regret your decision to go for the instant gratification.PRODUCTIVITY Being productive means you are successful in producing a desired or intended result. Matching your efforts with the work that requires your unique skill set will result in higher level work. More engaging, more difficult, more time consuming but infinitely more rewarding.The difference between being efficient and being productive can be the difference between getting a job done or doing the kind of work that gets you promoted.HOW CAN YOU TELL THE DIFFERENCE?Here are some important questions to ask yourself to help distinguish between whether you are being efficient or productive:1. Am I efficient only at doing unimportant tasks?2. Am I busy just doing things or am I getting things done?3. Am I matching priorities with tasks?Focus attention on tasks that help you attain goals. This will ultimately help you find a better balance and become more productive and effective.For more productivity tips, visit my Blog.I hope that helps,Sharon
What is the difference between production efficiency and tropic efficiency?
Production Efficiency refers to any production of energy. Productive efficiency occurs when the economy is utilizing all of its resources efficiently. The concept is illustrated on a production possibility frontier where all points on the curve are points of maximum productive efficiency. An equilibrium may be productively efficient without being allocatively efficient i.e. it may result in a distribution of goods where social welfare is not maximized. This takes place when production of one good is achieved at the lowest cost possible, given the production of the other goods. Equivalently, it is when the highest possible output of one good is produced, given the production level of the other goods. In long-run equilibrium for perfectly competitive markets, this is where average cost is at the base on the average cost curve i.e. where MC=A(T)C. Productive efficiency requires that all firms operate using best-practice technological and managerial processes. By improving these processes, an economy or business can extend its production possibility frontier outward and increase efficiency further. Tropic efficiency refers to the transfer of energy up tropic levels, e.g., the ratio of secondary productivity to primary productivity consumed. It's the transfer of energy through tropic levels, the tropic level is the same as the food chain.
Allocative and Productive efficiency? (economics)?
Allocative (sometimes called Pareto efficiency) efficiency occurs when firms produce where Price equals Marginal Cost. This occurs in perfectly competitive markets. With Pareto efficiency you cannot make someone better off without making someone else worse off. Productive efficiency occurs when firms produce on the lowest point of the average cost curve. In other words when all economies of scale have been exploited and any further increase in output will mean diseconomies of scale. This again occurs in perfectly competitive markets. Both types of efficiency occur on the boundary of the PPF. Hope that helps.
In economics, what's the difference between efficiency and productivity?
Efficiency and productivity are comparative terms related to the making of goods and the provision of services. Productivity means relatively a large rate of output compared to the effort put into the production process. This is related to the cost of use of the land (ground-rent), labor (wages) and capital durable goods (the dividends from the industrial concern). The last of course is less certain never the less when they are all added together and compared to what the competitive price of the product is one can claim that the productivity is good or bad. Efficiency usually refers to time spent in doing the same thing. It also relates to costs because when the time spent per unit of output is small, then many of the costs of making it are comparatively small and then the efficiency is high.
Help with Economics. When is allocative efficiency achieved?
It is achieved when what happens to the marginal benefit. I've been tryign to understand this all night and I cant figure it out. Is it -When its less than marginal cost -equals zero -equals marginal cost -exceeds marginal cost but not by as much as possible OR -exceeds marginal cost as much as possible
Economics: to achieve allocative efficiency?
To achieve allocative efficiency, one must compare the a. opportunity cost to the attainable point on the production possibilities frontier. b. marginal benefit of a good to its marginal cost. c. marginal cost of a good to its opportunity cost. d. point of production efficiency to the point of allocative efficiency. e. marginal cost to the production efficiency cost.
What is economic efficiency and what are some examples of it?
Economic efficiency is a state where every resource is allocated optimally so that each person is served in the best possible way and inefficiency and waste are minimized. While this is a general definition, lets look at some other factors often used to describe this term.1. Production of goods is at its lowest cost.2. One person cannot be helped, by means of reallocating the goods, without making another person worse off.3. It indicates that there has been a balance between loss and benefit.ExampleSo, let's take a look at an example to help us explain economic efficiency. Suppose a clothing factory has several machines to help sew the clothing. The machines can produce enough clothing that when sold could result in $100, $75, and $50. In this example, the most efficient option is the one that results in $100. Anything less than $100 is considered an inefficient use of the machines.While this may seem pretty clear cut, this scenario does not take variables into consideration. One obvious example, would be the amount of labor needed to operate the machines in order to produce $100. While $100 signifies maximum output, it also might signify more employees to operate those machines. More employees means paying more money in wages, which then affects profit.This is where consideration needs to be made about the balance of loss and benefit. Obviously, it would benefit the company to produce the maximum number of products, but how much loss, in the amount of more wages paid out, does the company really want to endure? Where do production output and labor paid balance?Also, it is important to point out that while the owner of the company may be happy having the machines operating at maximum output, in doing so, he is taking employees away from their families. This would illustrate that taking a resource away from one individual (time) helps make another better off (the company owner having machines working at maximum output).