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Explain What Productive Efficiency Means

question 89

Essay

Explain what productive efficiency means.Describe how productive efficiency is represented by a PPF.


Definitions:

Increasing Returns To Scale

See Economies of scale.

Economies Of Scale

Exist when average costs fall as output increases.

Diseconomies Of Scale

Exist when average costs rise with output.

Marginal Costs

The cost associated with producing one additional unit of a product, useful for decision-making on production levels and pricing.

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