Productive efficiency
What Productive efficiency means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Productive efficiency
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Reference: Pearson Edexcel
Achieved when a firm operates at the lowest possible cost per unit, maximising output from given inputs and minimising waste during production.
Occurs when a firm minimises its average costs, maximising output from given inputs.
Topics that use Productive efficiency
- Productive and allocative efficiency (Pearson Edexcel A-Level)
Related terms
- Allocative efficiency
- Consumer preferences
- Labour productivity
- Market interrelationships
- Market orientation
- Opportunity cost
- Trade-offs
- Human capital investment
Using Productive efficiency in the exam
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