Productive efficiency
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Productive efficiency is when the economy is working on its production possibility frontier (PPF). This is when production of one good is achieved at the lowest cost possible, given the production of the other good(s). Equivalently, it is the highest possible output of one good, given the production level of the other good(s). In long-run equilibrium for a perfectly competitive markets, this is where average cost is at the lowest point on the Average Cost curve.
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