Productive efficiency occurs in markets when
A)goods are produced at the lowest possible average total cost
B)goods are produced at the lowest average variable cost
C)goods are produced at the lowest marginal cost
D)goods are produced at the lowest average fixed cost
E)the economy is producing the maximum quantity of goods and services it can

Question

Quizplus · Accepted Answer

Productive efficiency occurs when goods are produced at the lowest possible average total cost. This means that resources are being used in the most efficient way possible to produce the maximum quantity of goods and services. Any deviation from this would result in higher costs and a less efficient use of resources.

Productive Efficiency Occurs in Markets When