Question

Economic Efficiency is the production of that combination of goods that consumers’ desire the most (maximum _________) given a fixed amount of resource input..

Answer 1

Answer:

utility

Explanation:

Economic efficiency is when the consumer can get the combination of goods, and do not have to trade off any product to get higher utility. For example, given the fixed amount of money, there are 2 desired products, apple and banana. If the customer buy apples with her all money, she will get utility of, for example, 3 utils. But since she love both fruits, have 2 type of fruit will make she will be happier, she will give up some apples to buy bananas, resulting in higher utility. This process continue util she get the highest utility.