A market that achieves productive eﬃciency is necessarily producing the quantity of goods most
desired by society.

Question

Quizplus · Accepted Answer

Productive efficiency means producing a given level of output at the lowest possible cost. This does not necessarily mean producing the quantity of goods most desired by society, as societal desires and preferences may vary. Achieving allocative efficiency, on the other hand, would mean producing the quantity of goods most desired by society.

A Market That Achieves Productive Eﬃciency Is Necessarily Producing the Quantity