A situation in which output is produced at the lowest possible cost is called allocative efficiency.

Name: A situation in which output is produced at the lowest possible cost is called allocative efficiency.
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Allocative efficiency refers to a situation where resources are allocated in a way that maximizes societal welfare or utility. It is not necessarily the same thing as producing output at the lowest possible cost, as other factors such as demand and externalities may also need to be considered.

A Situation in Which Output Is Produced at the Lowest