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# Productive efficiency - lowest point on what curve Watch

1. Hi. Is productive efficiency achieved when the firm produces at the lowest point on the SHORT RUN AVERAGE COST CURVE or the LONG RUN average cost curve?

How do i explain it in an exam, do i say e.g. this is the point where costs are lowest therefore wastage is lowest thus efficiency is maximised or what? Thank you.
2. Productive efficiency could take place in the short run or long run. There are many interpretations of productive efficiency (e.g can't produce more of a good without producing less of another good). Use the one from your textbook
3. (Original post by keynes24)
Productive efficiency could take place in the short run or long run. There are many interpretations of productive efficiency (e.g can't produce more of a good without producing less of another good). Use the one from your textbook
So in my exam do i say it occurs at the minimum SRAC or minimum LRAC?
4. (Original post by BrownieLover)
So in my exam do i say it occurs at the minimum SRAC or minimum LRAC?
Minimum point of the average cost curve or any similar definition
5. (Original post by keynes24)
Minimum point of the average cost curve or any similar definition
Yes but i would draw a graph to illustrate my point and would have to say what the graph is ie. short or long run
6. (Original post by BrownieLover)
Yes but i would draw a graph to illustrate my point and would have to say what the graph is ie. short or long run
I already answered your question. I think you are complicating things. You can easily just indicate AC. Is this for AS or A2? What is the question? In which situation would you introduce this? I would only indicate a difference between short run and long run if referring to different market structures (monopolistic competition, perfect competition) or indicating a difference between increasing/diminishing returns and economies/diseconomies of scale which are A2 topics

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