x-inefficiency
noun [ U ]
ECONOMICS, PRODUCTION ukusa situation in which a company or a particular machine fails to produce the largest possible number of goods with the time, materials, or labour that it has available:
The company's x-inefficiency and high prices are mainly the result of a lack of competition in the market.
See also
technical inefficiency
Compare
x-efficiency
x-inefficient
adjective
Firms producing below potential are assumed to be x-inefficient.