[Solved] What Is Productive Efficiency

The following are cost data for four different size plants available to a competitive producer: -Refer to the above information to answer this question.If the market price of this product is $60,which is the best size of plant? A)The plant represented by AC1. B)The plant represented by AC2. C)The plant represented by AC3. D)The plant represented by AC4. E)It depends on whether it is the short run or the long run.

The following are cost data for four different size plants available to a competitive producer: -Refer to the above information to answer this question.If the market price of this product is $80,which is the best size of plant? A)The plant represented by AC1. B)The plant represented by AC2. C)The plant represented by AC3. D)The plant represented by AC4. E)It depends on whether it is the short run or the long run.

The following are cost data for four different size plants available to a competitive producer: -Refer to the above information to answer this question.What will be the price of the product in the long run? A)$55. B)$70. C)$65. D)$75. E)Cannot be determined.

Which of the following is true regarding the equilibrium price in perfectly competitive markets in the long run? A)It will equal the firm's long- and short-run average costs and also its marginal cost. B)It will equal the firm's long- and short-run average costs but not its marginal cost. C)It will equal the firm's long-run average costs and also its marginal cost but not its short-run costs. D)It will equal the firm's short-run average costs and also its marginal cost but not its long-run costs.

What is the term for production of a product at the lowest possible average cost? A)Allocative efficiency. B)Productive efficiency. C)Marginal efficiency. D)Optimal efficiency.

What is the term for the production of that combination of products which best satisfies consumers' demands? A)Allocative efficiency. B)Productive efficiency. C)Marginal efficiency. D)Optimal efficiency.

What is allocative efficiency? A)Production of a combination of products that best satisfies consumers' demands. B)The maximization of inputs for a given level of output. C)The production of an output at the lowest possible cost. D)The minimization of output for a given level of inputs.

The following graph depicts the various cost curves for a representative competitive firm producing quantity Q1: -Refer to the above graph to answer this question.If the price of the product is P1,what does the graph suggest? A)The market is achieving productive efficiency but not necessarily allocative efficiency. B)The market is achieving allocative efficiency but not necessarily productive efficiency. C)The market is achieving neither productive efficiency nor allocative efficiency. D)The market is achieving both allocative efficiency and productive efficiency.

The following graph depicts the various cost curves for a representative competitive firm producing quantity Q1: -Refer to the above graph to answer this question.If the price of the product is P1,what does the graph suggest? A)The firm is making economic profits in the short run but not in the long run. B)The firm is making economic profits in the long run but not in the short run. C)The firm is making economic profits in both the short run and the long run. D)The firm is not making economic profits in either the short run or the long run.

The following graph depicts the various cost curves for a representative competitive firm producing quantity Q1: -Refer to the above graph to answer this question.If the price of the product is P1,what does the graph suggest? A)The firm is operating from the optimal size plant but is not necessarily producing the optimal output. B)The firm is producing the optimal output but is not necessarily operating from the optimal size plant. C)The firm is neither operating from the optimal size plant nor necessarily producing the optimal output. D)The firm is producing the optimal output and is also operating from the optimal size plant.