Productive efficiency is achieved when firms produce goods and services
A)most desired by society.
B)at the highest profit margin.
C)at the lowest cost.
D)of the highest quality.

Question

Quizplus · Accepted Answer

Productive efficiency is achieved when firms produce goods and services at the lowest cost possible. This means that they are able to produce a given output using the minimum amount of resources, such as labor, materials, and energy. By achieving productive efficiency, firms are able to optimize their production processes, minimize waste, and stay competitive in the market. While producing goods and services that are popular with consumers, offering high profit margins, or of high quality are all important factors for firms, none of these factors guarantee productive efficiency.

Productive Efficiency Is Achieved When Firms Produce Goods and Services