If productive efficiency characterises a market,
A)the marginal cost of production is minimised.
B)firms produce the goods that consumers desire most.
C)the output is being produced at the lowest possible cost.
D)firms use the best technology available to produce the good.

Question

Quizplus · Accepted Answer

Productive efficiency means that the output is being produced at the lowest possible cost. This implies that resources are being used efficiently, and firms are producing with the minimum average cost. The other options may also be true in a productive efficient market, but they do not characterise it by definition.

If Productive Efficiency Characterises a Market