There are three types of efficiency discussed in microeconomics:
1. Productive or technical efficiency
2. Allocative efficiency
3. Dynamic efficiency
I won't define these terms as you can just look them up in your text, but remember that long-run equilibrium in the perfectly competitive model results in both productive and allocative efficiency, something that is really quite significant in microeconomics! In the next chapter, we'll get further into the "debate" as to whether dynamic efficiency is of greater important to society than the first two types.
