Economics (AS & A Level) · Oct / Nov 2021 · Paper 32 · Question 1
9708Efficiency and market failure
Which statement best defines productive efficiency?
- AIt is not possible to increase profits by changing the level of production.
- BIt is not possible to make anyone better off without others becoming worse off.
- CIt is not possible to produce the level of output at a lower unit cost.
- DIt is not possible to produce outside the production possibility curve.
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Correct answer: C. It is not possible to produce the level of output at a lower unit cost.
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