X-inefficiency is a concept used in economics to describe instances where firms go through internal inefficiency resulting in higher production costs than required for a given output. This inefficiency can result from various factors, such as outdated technology, inefficient production processes, poor management, and lack of competition, and it results in lower profits for the inefficient firm(s) and higher prices for consumers.
X-inefficiency is a concept used in economics to describe instances where firms go through internal inefficiency resulting in higher production costs than required for a given output. This inefficiency can result from various factors, such as outdated technology, inefficient production processes, poor management, and lack of competition, and it results in lower profits for the inefficient firm(s) and higher prices for consumers.
Source: Wikipedia "X-inefficiency" · CC BY-SA 4.0
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