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

Question

Quizplus · Accepted Answer

Productive efficiency means that an economy or a production process is using all its resources efficiently, producing as much as possible with given technology and inputs. However, it does not necessarily mean that the mix of goods and services produced is the one most desired by society, which relates to allocative efficiency.

A Market That Achieves Productive Efficiency Is Necessarily Producing the Quantity