Productive efficiency for an individual firm requires that
A) all resources be fully used.
B) P = ATC for all goods.
C) the firm be allocatively efficient.
D) MC = P for all goods.
E) the firm be on its LRAC curve.

Question

Quizplus · Accepted Answer

Productive efficiency for an individual firm is achieved when it is producing at the lowest point on its Long-Run Average Cost (LRAC) curve, meaning it is minimizing costs and using resources efficiently.

Productive Efficiency for an Individual Firm Requires That