Productive efficiency is generated by:
A)competition among sellers.
B)competition among buyers.
C)government inspectors.
D)government production rules and regulations.

Question

Quizplus · Accepted Answer

Productive efficiency refers to producing goods and services at the lowest possible cost without sacrificing quality. Competition among sellers encourages them to minimize their costs and improve their production processes to stay competitive in the market, leading to productive efficiency. On the other hand, competition among buyers or government regulations may influence the quantity of goods or services produced, but they might not necessarily promote cost minimization, which is the essence of productive efficiency. Therefore, the best choice for generating productive efficiency is competition among sellers (choice A).

Productive Efficiency Is Generated By