Productive efficiency

• Producing the largest possible output from the available resources in an economy
• Once a company or market reaches productive efficiency, creating any additional units
would require reducing the production level of another product

Allocational or allocative efficiency,

• An efficient market whereby all goods and services are optimally distributed
among buyers and sellers in an economy.
• It occurs when parties are able to use the accurate and readily available data
reflected in the market to make decisions about how to utilize their resources

Social efficiency
• Optimal distribution of resources in society taking into consideration all the internal
and external costs and benefits.

Dynamic efficiency
• Involves improving allocative and productive efficiency over time.
• This can mean developing new or better products and finding better ways of
producing goods and services.

Technical efficiency refers to the relationship between resource inputs and outputs.

• There are different types of (in)efficiency, including:

• Allocative efficiency – or doing the right things (providing highest value health services
for available resources)
• Technical efficiency – or doing the things right (how resources are used during service
provision)

Distributive efficiency
• Occurs when goods and services are received by those who have the greatest need
for them in social welfare.
• Abba lerner first proposed the idea of distributive efficiency
COST AND COST CONTROL
COST:
Cost is the expenditure required to create and sell products and
services, or to acquire assets.