What is productive efficiency?

productive efficency is seen at the lowest point of average cost, which is also where the marginal cost curve cuts the average cost curve. Productive efficiency means that all resources have been allocated effectively, meaning that the output of a good that is produced, is made whilst incurring the lowest cost of prodcution possible.

IA

Related Economics GCSE answers

All answers ▸

Explain two reasons why firms merge.


What is the definition of an internal economies of scale?


What are the benefits of an increase in the National Minimum Wage?


How would an increase in interest rates impact aggregate demand