A market that achieves productive efficiency is producing the quantity of goods most desired by society.

Question

Quizplus · Accepted Answer

Productive efficiency occurs when goods are being produced at the lowest possible cost and optimal allocation of resources, regardless of whether the quantity produced is what society desires. Allocative efficiency, on the other hand, achieves production of the quantity of goods most desired by society.

A Market That Achieves Productive Efficiency Is Producing the Quantity