Technical efficiency and allocative efficiency are the two parameters required to achieve _____.
A)total cost efficiency
B)total financial efficiency
C)total sales efficiency
D)total productive efficiency

Question

Quizplus · Accepted Answer

Technical efficiency refers to the ability to produce the maximum possible amount of output with the minimum amount of input. Allocative efficiency refers to the ability to produce the right amount of goods and services that are needed by consumers at the lowest possible cost. Together, technical efficiency and allocative efficiency ensure total productive efficiency.

Technical Efficiency and Allocative Efficiency Are the Two Parameters Required