_____ efficiency is reached when a firm achieves the maximum possible output within a given set of resources.

Question

Quizplus · Accepted Answer

Productive efficiency occurs when a firm is producing the maximum output from the minimum quantity of inputs, thus operating at a point where it cannot produce more of one good without producing less of another. This is a reflection of the firm making optimal use of its resources.

_____ Efficiency Is Reached When a Firm Achieves the Maximum