Productive Efficiency Is Generated By

question 4

Multiple Choice

Productive efficiency is generated by:

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

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Definitions:

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, due to the scale of operation increasing.

Opportunity Cost

The abandonment of potential improvements from other possibilities once one choice is made.

Absolute Advantage

A country's ability to produce a good more efficiently than other countries, requiring fewer resources for the same output.

Autarky

National self-sufficiency; no economic interaction with foreigners.