Which of the following describes a situation in which a good or service is produced at the lowest possible cost?

Question

Quizplus · Accepted Answer

Productive efficiency refers to a situation in which a firm produces a given output using the least amount of inputs. This means that the firm is able to produce goods and services at the lowest possible cost, ensuring that resources are not wasted. Allocative efficiency, on the other hand, refers to a situation in which resources are allocated to produce the goods and services that society needs the most. Marginal efficiency and profit maximisation are not related to the concept of producing goods and services at the lowest possible cost.

Which of the Following Describes a Situation in Which a Good