Business, Legal & Accounting Glossary

Definition: X-Efficiency


Quick Summary of X-Efficiency

X-efficiency describes a company’s inability to get the maximum output for its inputs due to a lack of competitive pressure.

What is the dictionary definition of X-Efficiency?

Dictionary Definition

That part of overall efficiency which consists of getting the maximum output technically possible from any given inputs, or producing a given output with the fewest possible inputs.

X-efficiency thus implies the complete absence of slack in production.

Evidence for X-efficiency can take 2 forms. One is theoretical, showing that in principle better results are not obtainable.

The other is emperical, showing that no other firm or organisation is observed to do better.

Full Definition of X-Efficiency

X-inefficiency is the divergence of a firm’s observed behaviour in practice, influenced by a lack of competitive pressure, from efficient behaviour assumed or implied by economic theory.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
X-Efficiency. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
February 02, 2023 https://payrollheaven.com/define/x-efficiency/.
Chicago Manual of Style (CMS):
X-Efficiency. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/x-efficiency/ (accessed: February 02, 2023).
American Psychological Association (APA):
X-Efficiency. PayrollHeaven.com. Retrieved February 02, 2023
, from PayrollHeaven.com website: https://payrollheaven.com/define/x-efficiency/

Definition Sources

Definitions for X-Efficiency are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 1st April, 2020 | 0 Views.