Productive efficiency
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Productive efficiency is when the economy is working on its production possibility frontier (PPF). This is when production is achieved at the lowest cost possible, and is when Average Cost is at the lowest point on the AC curve. Graphically this is where the price is at the minimum point of the Average Total Cost curve. Productive efficiency can be defined as 'using the least amount of resources to produce a given good or service or output is being produced at the lowest possible unit cost.'
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