When is productive efficiency achieved?
A)When firms add a low profit margin to the goods and services they produce
B)When firms produce the goods and services that consumers value most
C)When firms produce goods and services at the lowest cost
D)When there are no shortages or surpluses in the market

Question

Quizplus · Accepted Answer

Productive efficiency is achieved when firms produce goods and services at the lowest cost possible. This means using the most efficient methods and technologies available to produce a given level of output. When firms achieve productive efficiency, they are able to produce goods and services at the lowest possible cost, which means they can offer these goods and services to consumers at lower prices.

When Is Productive Efficiency Achieved