________ is a situation in which a good or service is produced at the lowest possible cost.
A)Allocative efficiency
B)Productive efficiency
C)Equity
D)Optimal marginalism

Question

Quizplus · Accepted Answer

Productive efficiency is a situation in which a good or service is produced at the lowest possible cost. This means producing a good or service with the least amount of input, while maintaining the quality of the output. In other words, it is producing at the point on the production possibility frontier where resources are used most efficiently. Allocative efficiency, on the other hand, refers to producing the right quantity and type of goods and services that are most valued by society. Equity and optimal marginalism are not related to the concept of lowest possible cost of production.

________ Is a Situation in Which a Good or Service