A situation in which a good or service is produced at the lowest possible cost is:
A)allocative efficiency
B)productive efficiency
C)equity
D)optimal marginalism

Question

Quizplus · Accepted Answer

Productive efficiency occurs when a good or service is produced at the lowest possible cost, using the most efficient production methods and technologies. This means that resources are being used in the most efficient way to create the maximum amount of output possible. Allocative efficiency, on the other hand, refers to the distribution of resources among different goods and services to give as much benefit as possible to society, while equity refers to fairness in the distribution of resources. Optimal marginalism is a concept in economics that refers to the idea that people will continue to consume a good or service as long as the marginal benefit is greater than or equal to the marginal cost. While this concept is related to efficiency, it does not refer specifically to the lowest possible cost of production.

A Situation in Which a Good or Service Is Produced