Textbook ExpertVerified Tutor
25 Nov 2021
Introduction
Productive efficiency- It refers to the situation in the economy where it is producing at the maximum efficient level. It is that situation where the economy cannot produce any more of a good without sacrificing production of another good.
Allocative efficiency- It refers to the state of the economy where all that the resources are utilized to produce the most desired commodities, where the marginal benefit to the consumer is equal to the marginal cost of production.
Unlock all Textbook Solutions
Already have an account? Log in