What is social efficiency?
In this regard, what is a socially efficient quantity?
The socially efficient level of output is that quantity that maximizes the sum of the consumer and producer surpluses. It is the most efficient output level because the marginal social benefit of producing and consuming another unit equals the marginal social cost.
Subsequently, question is, what is meant by dynamic efficiency? Definition of Dynamic Efficiency Dynamic efficiency is concerned with the productive efficiency of a firm over a period of time. A firm which is dynamically efficient will be reducing its cost curves by implementing new production processes. Dynamic efficiency will enable a reduction in both SRAC and LRAC.
Simply so, who gave the concept of social efficiency?
However, an investigation of the origin of the term indicates that 'social efficiency' began its career in 1894 in the UK with the writing of Benjamin Kidd. From the outset, Kidd's social Darwinist position was disputed by sociologists and philosophers who interpreted the term from a humanitarian point of view.
What is a social cost of production?
Social cost includes these private costs and the additional costs (or external costs) associated with the production of the good for which are not accounted for by the free market. Mathematically, social marginal cost is the sum of private marginal cost and the external costs.