Productive inefficiency implies that
A) it is possible to obtain gains in one area without losses in another.
B) it is impossible to obtain gains in one area without losses in another.
C) there are too many resources.
D) there are too few resources.
E) none of the above

Question

Quizplus · Accepted Answer

Productive inefficiency refers to a situation where it is possible to produce more of one good or service without reducing the production of another. This can be achieved through better utilization of resources or technology, thus gaining efficiency in one area without losing in another.

Productive Inefficiency Implies That