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Daily Economics and Econometrics
Search Daily Economics and Econometrics!!! Home About Questions X-Innefficiency 23 Jul While we are constructing average-total-cost curve, we assume that firms have the most efficient technology. In other words, the firm owns the technology that permits to achieve the lowest average-total-cost at whatever the quantity output is. X-Innefficiency is the failure of firm to produce any specific output at lowest possible average total cost. Why does X-inefficiency occurs if it reduces firm?s