Static efficiency is when resources are allocated efficiently at a point in time. An example of static efficiency would be whether a firm could produce 2million cars a year more cheaply by using more labour and less capital. Productive and allocative efficiency are static concepts of efficiency, they can be used to discuss whether more could be produced now if resources were allocated in a different way. These concepts can be used for instance, to discuss whether industries dominated by a monopoly producer might produce at lower cost if competition were introduced in the industry.
Dynamic efficiency is concerned with how resoures are allocated over a period of time. You could ask yourself a few questions; for example, would there be greater efficiency if a firm distributed less profit over time to its shareholders and used the money to finance more investment? Would there be greater efficiency in the economy if more resources where devoted to investment rather than consumption?Would an industry invest more and create more new products over time if it were a monopoly than if it were in perfect competition?