Asked by
Binita Limbu
on Nov 27, 2024
Verified
Productive efficiency refers to
A) cost minimization, where P = minimum ATC.
B) production at a level where P = MC.
C) maximizing profits by producing where MR = MC.
D) setting TR = TC.
Productive Efficiency
A situation where goods and services are produced at the lowest possible cost and resources are utilized optimally.
Cost Minimization
A strategy employed by businesses to reduce production or operational costs to the lowest possible level without sacrificing quality or output.
- Apprehend the idea of allocative and productive efficiency within market constructs.
- Discern the importance of marginal cost, average total cost, and price in realizing productive and allocative efficiency.
Verified Answer
GV
Learning Objectives
- Apprehend the idea of allocative and productive efficiency within market constructs.
- Discern the importance of marginal cost, average total cost, and price in realizing productive and allocative efficiency.