Answer:
Productive efficiency allows to produce at minimum costs.
Explanation:
Productive efficiency can be defined as the situation in the production process when the products are being produced at the lowest possible cost. Any increase in the output beyond this level will cause the average costs to increase.
Graphically, the lowest point of the average total cost curve represents the point of productive efficiency.
A firm operating in a market economy has a strong incentive of becoming productively and allocatively efficient because productive efficiency allows it to produce at the lowest possible cost.
