Which of the Following Generates Productive Efficiency

question 159

Multiple Choice

Which of the following generates productive efficiency?

• A)competition among sellers
• B)competition among buyers
• C)government inspectors
• D)government production rules and regulations

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Definitions:

Capacity Allocation

The process of distributing resources and production capacity among various products, services, or activities to efficiently meet demand and optimize output.

Utilization

The extent to which a system, resource, or component is used relative to its total capacity, typically expressed as a percentage.

Higher Costs

Increased expenses or financial outlays in comparison to a baseline or expected level, affecting profitability.

Positive Externalities

Benefits that occur as a result of an economic activity which positively affect individuals or entities not directly involved in the activity.