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Question
Refer to the graph below.
Productive efficiency is achieved at what points?
A. A, B, and M
B. C, D, and N
C. A, C, and F
D. M, D, and E
Productive efficiency is achieved when as much output as possible is obtained from a given amount of resources. Points on the production possibility curve (i.e., A through F) represent points of productive efficiency. Points inside the curve (i.e., N) represent points of productive inefficiency (N). Points outside the curve (i.e., M) are unattainable.
Answer
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