A situation in which a good or service is produced at the lowest possible cost is:
A)productive efficiency.
B)allocative efficiency.
C)equity.
D)optimal marginalism.

Question

Quizplus · Accepted Answer

Productive efficiency occurs when a good or service is produced at the lowest possible cost, minimizing waste and maximizing output. It is focused on using the available resources in the most efficient manner, regardless of whether these resources are being used to produce the optimal amount or type of output. Allocative efficiency, on the other hand, is focused on producing the optimal amount and type of output that benefits society the most, not necessarily at the lowest possible cost. Equity refers to fairness or justice in the distribution of resources or outcomes. Optimal marginalism is a concept that suggests that resources should be allocated based on the benefit they provide relative to their cost, but it is not directly related to efficiency.

A Situation in Which a Good or Service Is Produced