Productive efficiency is apprehensive with producing goods and services with the finest arrangement of inputs to make utmost output for the lowest cost. Productive efficiency is an economic stage at which the economy can no longer make other amounts of a good without lowering the production stage of another product. This will occur when an economy is working along its production possibility limit. Productive efficiency occurs when assembly of one good is achieved at the lowest reserve rate feasible, given the stage of production of the further goods.
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