What is the term for production of a product at the lowest possible average cost?
A)Allocative efficiency.
B)Productive efficiency.
C)Marginal efficiency.
D)Optimal efficiency.

Question

Quizplus · Accepted Answer

The term for production of a product at the lowest possible average cost is productive efficiency. This means that the firm is utilizing all its resources and technology to produce goods at the lowest cost possible. Allocative efficiency refers to producing the right amount of goods based on consumer demand, while marginal efficiency relates to the additional benefit gained from producing one more unit of a product. Optimal efficiency is not a commonly used term in economics.

What Is the Term for Production of a Product at the Lowest