The term productive efficiency refers to
A) any short-run equilibrium position of a competitive firm.
B) the production of the product mix most desired by consumers.
C) the production of a good at the lowest average total cost.
D) fulfilling the condition P = MC.

Question

Quizplus · Accepted Answer

Productive efficiency occurs when a firm produces a good at the lowest possible average total cost. This means that the firm is producing the good at the minimum cost possible for the given level of technology and inputs.

The Term Productive Efficiency Refers to