Question

_________ occurs when a good or service is produced at the lowest possible cost.

Answer 1

Answer:

The correct answer is letter "C": Productive efficiency.

Explanation:

Productive Efficiency is a point where an economy cannot increase the output of a good or service without lowering another product's production level. An economy operating along its Production Possibility Frontier (PPF) has been optimizing its efficiency in production.

Productive Efficiency is achieved with the lowest possible cost of producing goods. In such a case, economists and companies try to manufacture goods using the fewest available resources.

Answer 2

Answer:

The correct option is C,productive efficiency

Explanation:

Allocative efficiency occurs when goods are produced to reflect the preferences of the consumers.This means that the producers are not concerned about deploying their resources in the most efficient manner as the overriding point is the satisfaction of customers' expectations.Hence option B is wrong.

Voluntary exchange refers to process of suppliers and customers engaging  in business transactions with freewill.

However,productive points to effective and efficient allocation of resources to yield maximum output and at the lowest possible cost per unit.No doubt option C is the correct answer.