What is productive efficiency?
A)Production of a combination of products that best satisfies consumers' demands.
B)The maximization of inputs for a given level of output.
C)The production of an output at the lowest possible average cost.
D)The minimization of output for a given level of inputs.

Question

Quizplus · Accepted Answer

Productive efficiency refers to producing a given level of output at the lowest possible cost. This means that a firm must produce at the point where average total cost (ATC) is minimized. Thus, the correct answer is C, which states that productive efficiency is the production of an output at the lowest possible average cost.

What Is Productive Efficiency