What is productive efficiency? question 18 options:

a. a situation in which firms produce as much as possible

b. a situation in which resources are allocated such that goods can be produced at their lowest possible average cost

c. a situation in which resources are allocated such the last unit of output produced provides a marginal benefit to consumers equal to the marginal cost of producing it

d. a situation in which resources are allocated to their highest profit use?

Question

Business

Sydney Wallace

24 December, 09:35

What is productive efficiency? question 18 options:

a. a situation in which firms produce as much as possible

b. a situation in which resources are allocated such that goods can be produced at their lowest possible average cost

c. a situation in which resources are allocated such the last unit of output produced provides a marginal benefit to consumers equal to the marginal cost of producing it

d. a situation in which resources are allocated to their highest profit use?

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Answers (1)

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Messiah Macdonald · Answer 1

What is productive efficiency? A situation in which resources are allocated such that goods can be produced at their lowest possible average cost.

The resources are wanting to be used at the lowest possible average cost so that companies aren't having to give up the production of another item to produce that one. Being efficient while still maintaining good quality is the overall goal of productive efficiency.