Moderate

Productive efficiency means___________________?

Correct answer: A. Producing all output combinations in the least costly way

  • A. Producing all output combinations in the least costly way
  • B. Producing the specific output mix most desired by society
  • C. Producing the desired ones only
  • D. None

Explanation

Productive efficiency means obtaining a given combination of outputs at the lowest possible cost, or producing the maximum possible output from available resources. Choosing the output mix most desired by society is allocative efficiency, not productive efficiency.

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