Asked by
Mineka Robertson
on Oct 09, 2024Verified
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.
Verified Answer
JR
Learning Objectives
- Distinguish between allocative and productive efficiency in market contexts.
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