Exhibit 24-3 Refer to Exhibit 24-3. What level of output is productively efficient? A)Q₁ B)Q₂ C)Q₃ D)It is not labeled on the diagram. E)It is not determinable without more information.

Question

Quizplus · Accepted Answer

Productively efficient output occurs at the lowest point on the long run average total cost curve (LAC), where the LAC curve is tangent to the production possibilities curve (PPC). In this exhibit, point Q₃ represents the point where the LAC is tangent to the PPC, indicating a productively efficient level of output.

Exhibit 24-3 Refer to Exhibit 24-3. What Level of Output Is Productively