Which of the following best describes productive efficiency?
A) Producing a medical service at the lowest possible cost.
B) Constructing a new medical facility to exactly offset a market shortage of such services.
C) Increasing the amount of hospital beds available such that each person in the population served has a bed allocated to him/her.
D) None of the above.
E) More than one of the above statements is true.

Question

Quizplus · Accepted Answer

Productive efficiency is the production of goods or services at the lowest possible cost. Option A accurately captures this definition. Option B refers to achieving allocative efficiency by balancing supply and demand, and option C refers to achieving technical efficiency by using resources fully, but neither accurately describes productive efficiency.

Which of the Following Best Describes Productive Efficiency