Respuesta :
When a firm produces a specific output level at a higher cost than the necessary cost for that level of output, it is called x-inefficiency.
What is x-inefficiency?
- A firm's observable behavior in practice that deviates from the efficient behavior expected or suggested by economic theory, as impacted by a lack of competitive pressure, is said to be X-inefficient.
- Harvey Leibenstein was the one who first proposed the idea of X-inefficiency.
- In 1966, Harvard University professor Harvey Leibenstein published an article titled "Allocative efficiency vs. X efficiency" in the American Economic Review, which proposed the concept of X-inefficiency.
- The term "X-inefficiency" refers to a firm's production that does not fully utilize its resources, with the end result reaching the efficiency frontier, which is the highest level of output achievable given the available resources and environment.
To learn more about X-inefficiency with the given link
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