When goods are produced at the lowest possible cost, an economy is said to have achieved
A) production efficiency.
B) allocative efficiency.
C) cheap production.
D) inferior quality goods.

Question

Quizplus · Accepted Answer

Production efficiency refers to producing goods and services at the lowest possible cost, using the least amount of resources possible. This means that the economy is able to produce goods at the maximum output possible, given the resources available. Achieving production efficiency can lead to lower prices for consumers and higher profits for producers, making it an important goal for any economy.

When Goods Are Produced at the Lowest Possible Cost, an Economy