Define: X-efficiency

UK 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.


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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.


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https://payrollheaven.com/define/x-efficiency/
Modern Language Association (MLA):
X-efficiency. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 22, 2020 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 22, 2020).
American Psychological Association (APA):
X-efficiency. PayrollHeaven.com. Retrieved February 22, 2020, 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)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th May 2019.