Which feature is NOT a characteristic of dynamic efficiency?

Dynamic efficiency refers to the ability of an economy or a firm to adapt over time to changing conditions, particularly in consumer preferences, technology, and competitive environments. It is characterized by several key features:

Adapting to changes in consumer demand is crucial for dynamic efficiency, as businesses that can respond swiftly to the evolving preferences of consumers are more likely to maintain their market relevance and profitability over the long term.

Shifting resources effectively across industries also embodies the essence of dynamic efficiency. This involves reallocating resources to sectors where they are most productive, thereby enhancing overall economic performance and growth.

Encouraging innovation over time is another fundamental aspect of dynamic efficiency, as ongoing innovation leads to improved products and processes, driving economic and technological advancement.

Maintaining high prices for consumers, however, does not align with the principles of dynamic efficiency. In a dynamically efficient market, the goal is to not only meet but anticipate consumer needs while ensuring competitive pricing through innovation and resource management. High prices often indicate a lack of competition or responsiveness to consumer demand, which contradicts the essence of being dynamically efficient.

Therefore, this feature of maintaining high prices stands out as not characteristic of dynamic efficiency, as it does not facilitate adaptation, resource allocation, or innovation.