When society produces the mix of goods and services that are most desired and produces them at the lowest cost possible

Question

Quizplus · Accepted Answer

Production efficiency is achieved when the goods are produced at the lowest cost possible. Allocative efficiency is achieved when the mix of goods being produced is the most desired by society. Hence, when both efficiencies are achieved, it means that society is producing the desired goods at the lowest cost possible, making choice C the correct answer.

When Society Produces the Mix of Goods and Services That