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Mineka Robertson
on Oct 09, 2024

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A market that is achieving allocative efficiency must also be achieving productive efficiency.

Allocative Efficiency

A scenario in resource distribution where improving the situation of any single person is achievable only at the expense of another's wellbeing.

Productive Efficiency

A situation where goods or services are produced at the lowest possible cost, utilizing resources in the best way possible without waste.

  • Distinguish between allocative and productive efficiency in market contexts.
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JR
jessi rodriOct 09, 2024
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