What type of efficiency exists when competition among individual producers drives all but the lowest-cost producers of goods or services out of the market?
A) Allocative
B) Economic
C) Strategic
D) Productive

Question

Quizplus · Accepted Answer

When competition among individual producers drives all but the lowest-cost producers out of the market, productive efficiency occurs. This means producers are operating at the lowest possible cost per unit of output, which maximizes their profit margins.

What Type of Efficiency Exists When Competition Among Individual Producers