4. "Production of an output at the lowest possible average cost" is the definition of: *...

Question

Question

4. Production of an output at the lowest possible average cost is the definition of: * OA) Allocative efficiency O B) Oppor

Answer 1

Answer #1

Ans is C

Productive efficiency is at a point where output produces at a point of min of AC.

Where allocative efficiency is achieved when willingness to pay is equal to marginal cost for the last unit sold

opportunity cost is the next best alternate forgone

Answer 2

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