English Wikipedia - The Free Encycl...
Download this dictionary
Productive efficiency
Productive efficiency is a situation in which the economy could not produce any more of one good without sacrificing production of another good. The concept is illustrated on a production possibility frontier (PPF), where all points on the curve are points of productive efficiency. An equilibrium may be productively efficient without being allocatively efficient— i.e. it may result in a distribution of goods where social welfare is not maximized.

See more at Wikipedia.org...


© This article uses material from Wikipedia® and is licensed under the GNU Free Documentation License and under the Creative Commons Attribution-ShareAlike License