Productive efficiency implies that
A) it is impossible to obtain gains in one area without losses in another.
B) it is possible to obtain gains in one area without losses in another.
C) there are too many resources available.
D) there are too few resources available.

Question

Quizplus · Accepted Answer

Productive efficiency occurs when an economy or entity is operating at its maximum capacity, meaning it cannot produce more of one good without reducing the output of another. This implies that resources are being used in the most efficient way possible, aligning with choice A's description of the impossibility of obtaining gains in one area without incurring losses in another.

Productive Efficiency Implies That