Efficiency can also refer to ... out unwanted characters and tidying up text sent by a client or colleague is a minute you could be working on something productive. Productive efficiency refers to the production of any particular bundle of goods and services in the least costly way, everything else held constant 1. Allocative efficiency is assured because each item is being produced up to the point at which the value of the last unit (its price) is equal to the value of the alternative goods being given up (its marginal cost.) The long-run supply curve for a purely competitive industry would be horizontal when: Productive efficiency refers to Multiple Choice the use of the least-cost method of production. D. Capacity utilisation is an important concept: It is often used as a measure of productive efficiency. ... productive efficiency and allocative efficiency. Production at a level where P = MC C. Maximizing profits by producing where MR = MC D. Setting TR = TC 9-12. An economy is producing at the least-cost rate of production when: Price and the minimum average total cost are equal Marginal cost is greater than average total cost Marginal revenue is greater than price Price and marginal revenue are equal lf a purely competitive firm is producing at the MR=MC output level and earning an economic profit, then: the selling price for this firm is above the market equilibrium price. A. Productivity. If the price of product Y is $25 and its marginal cost is $18: C. resources are being underallocated to Y. Refer to Exhibit 2-1. Productive Efficiency Refers To Multiple Choice The Use Of The Least-cost Method Of Production. A. C. The production level that equates marginal benefit and marginal cost D. Production anywhere inside the production possibilities frontier. there must be price fixing by the industry's firms. Depending on the industry you work in, efficiency may be more desirable than productivity, but usually their importance is proportionate. The factory can be very productive ¡, but not efficient. Refer to the above diagram for a monopolistically competitive producer. The minimum amount of production of goods and services for a society B. In everyday parlance, efficiency refers to lack of waste. The production of any particular bundle of goods and services in the least costly way, everything else held constant. The minimum amount of production of goods and services for a society B. Efficiency. When a purely competitive firm is in long-run equilibrium: marginal revenue exceeds marginal cost. It refers to producing the optimal quantity of some output, the quantity where the marginal benefit to society of one more unit just equals the marginal cost. the full employment of all available resources. The term productive efficiency refers to:-the production of a good at the lowest average total cost Assume a purely competitive, increasing-cost industry is in long-run equilibrium. | Terms Productivity refers to the conversion level of inputs into outputs. Productive efficiency refers to _____. & However, if firms in the economy were to improve on their production methods and increase productivity, it is possible for the PPF to shift outwards, thus … © 2003-2021 Chegg Inc. All rights reserved. An industry is producing at the … 18. Productive efficiency when resources are used to give the maximum possible output at the lowest possible cost. Terms in this set (10) The term productive efficiency refers to: -the production of a good at the lowest average total cost. Operations Management and its Definition, Principles, Strategies, Scope, Nature. C. The production level that equates marginal benefit and marginal cost D. Production anywhere inside the production possibilities frontier. View desktop site, Productive efficiency refers to Multiple Choice the use of the least-cost method of production. If 100 units can be produced for dollar100, then 150can be produced for dollar150, 200 for dollar200, and so forth. 15. A firm is said to be productively efficient when it is producing at the lowest point on the average cost curve (where Marginal cost meets average cost). O c the short-run equilibrium for a competitive firm O d the production of … Not efficient is $ 25 and its Definition, Principles, Strategies, Scope, Nature at a where. The concept of technical efficiency of efficiency: productive efficiency it would the long-run equilibrium Scope... Therefore the unit price and output will both decline between marginal cost D. production anywhere inside the production frontier... 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