Abstract
X-efficiency. A situation in which a firm’s total costs are not minimized because the actual output from given inputs is less than the maximum feasible level. This outcome is also termed a situation of ‘technical inefficiency’. X-efficiency is a direct function of monopoly or market power in which competitive pressures are weakened. The term was originally applied to the manager-worker relationship but can be extended to deal with the manager-owner relationship. (See Separation of Ownership and Control.)
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© 1983 Aberdeen Economic Consultants
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Pearce, D.W. (1983). X. In: Pearce, D.W. (eds) The Dictionary of Modern Economics. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-17125-5_24
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DOI: https://doi.org/10.1007/978-1-349-17125-5_24
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