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 ▸

How would an increase in interest rates impact aggregate demand


What are supply side policies and how do they effect the economy?


Analyse how an increase in wages could cause inflation.


How would you structure a 6 mark essay question?