Answered

Productive efficiency implies

A. the possibility of gains in one area without losses in another.
B. the impossibility of gains in one area without losses in another.
C. that prices are stable.
D. that more output has been produced.



Answer :

GinnyAnswer

Final answer:

Productive efficiency ensures optimal production on the production possibilities frontier, minimizing waste and costs.


Explanation:

Productive efficiency refers to the scenario where it is impossible to produce more of one good without reducing the quantity produced of another. This means that production is optimized on the production possibilities frontier. In a perfectly competitive market, firms operate at the lowest possible average cost, ensuring goods are produced without waste.


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