Section: Principles of Microeconomics

13) The term economic efficiency refers to

1. each firm making a profit
2. the point where no additional units of output can be produced whith out decreasing the output of another good
3. the point in which the price of a good is stable
4. the point in which each firm has an equal share of the market
5. none of the above

Economic efficiency is the point in which no additional unit of a good can be produced without decreasing the output of another good.