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 can I learn to memorise all the different market structures?


Explain why a 'strong' pound might reduce the sales of steel in the UK.


Explain how rising interest rates affect consumption


Why is the demand for food relatively price inelastic?