The term "productive efficiency" refers to:
A)the situation where producer surplus is greater than consumer surplus.
B)the production of the product-mix most desired by consumers.
C)the production of a good in the least costly way.
D)the production of any good which producer desires to produce.

Question

Quizplus · Accepted Answer

Productive efficiency refers to the production of a good in the least costly way possible. This means that all resources are being used in the most efficient manner to minimize the cost of production without decreasing the quantity or quality of the product. It does not refer to the surplus gained by producers or the product-mix desired by consumers. Therefore, option C is the correct choice.

The Term "Productive Efficiency" Refers To