what is the difference between technical efficiency and productive efficiency?

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michellehan
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what is the difference between technical efficiency and productive efficiency?

In the revision guide it says that
technical efficiency involves producing a given quantity at the lowest possible average cost.
Productive efficiency entails producing goods and services at the lowest possible average cost for any level of output.

I feel like there is no much difference between the two?
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TSR Jessica
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Sorry you've not had any responses about this. Are you sure you’ve posted in the right place? Posting in the specific Study Help forum should help get responses.

I'm going to quote in Tank Girl now so she can move your thread to the right place if it's needed. :yy:

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Ahmed766
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Basically Productive efficiency is about being at the lowest point of the average cost line whilst technical efficiency is to do with the amount of resources you put in relative to the output. I think the less you put in compared to what you get out the more technically efficient you are.
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Olubiyi Ismail
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Yea! Technical efficiency shows the comparison between the amount of input used with the level of output. You are technically efficient if lesser input yields more output. Productive efficient on the other hand occurs if you are able to minimize cost of input to produce maximum level of output. This occurs where the Marginal cost(MC) equals the minimum point of the average cost. This will also occur on the production possibility frontier. Any point below the PPF will be considered inefficient and point above is not feasible.
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