Productive & Allocative EfficiencyWatch
Just wondering what is meant by allocative and productive efficient?
Also what markets are and aren't allocative and productive efficient?
allocatively efficient includes market forces: it is when inputs are used to their best to give what consumers/society want, thus using a demand-suppy graph you can decide on what point on a ppf is allocatively efficient. In a market economy, it is decided by the market at what point it is allocatively efficient.