What is productive efficiency? Does it guarantee that markets are operating efficiently?
Productive efficiency requires that firms in an industry produce goods and services in the least costly way. Productive efficiency alone does not guarantee that markets are operating efficiently. Society must also produce the goods and services that society wants most. This requires that a competitive market achieves allocative efficiency.
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When compared to a perfectly competitive industry, in a monopoly:
A) both consumer surplus and social surplus are larger. B) consumer surplus is lower but social surplus is larger. C) both consumer surplus and social surplus are smaller. D) consumer surplus is higher but social surplus is smaller.
Who believed that managers make decisions based on their assumptions of human nature?
a. mcgregor b. taylor c. ratter d. johnson