Which of the following statements is true? Group of answer choices Productive inefficiency implies that it is possible to produce more of one good and no less of another, but only if additional resources are made available. Productive efficiency implies that it is possible to produce more of one good and no less of another, even without additional resources. Productive inefficiency implies that it is impossible to produce more of one good and no less of another. Productive inefficiency implies that it is possible to produce more of one good and no less of another, even without additional resources.

Question

02-11-2020
Business

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Which of the following statements is true? Group of answer choices Productive inefficiency implies that it is possible to produce more of one good and no less of another, but only if additional resources are made available. Productive efficiency implies that it is possible to produce more of one good and no less of another, even without additional resources. Productive inefficiency implies that it is impossible to produce more of one good and no less of another. Productive inefficiency implies that it is possible to produce more of one good and no less of another, even without additional resources.

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Answer:

D. Productive inefficiency implies that it is possible to produce more of one good and no less of another, even without additional resources.

Explanation:

Productive inefficiency implies that it is possible to produce more of one good and no less of another, even without additional resources.

This simply means that, a business firm or company is able to produce a given level of output at a lower cost or produce a higher level of output for a given cost. Therefore, the business firm or company isn't producing at its lowest unit cost for production.

For instance, a business firm that is inefficient would have higher operating costs and be at disadvantage with rival firms.