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22 December, 08:53

In the long run, will Enviromax produce the allocatively and productively efficient level of output? Explain.

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  1. 22 December, 09:08
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    Answer: Enviromax has produced the allocatively and productively efficient level of output, yes.

    Explanation:

    Enviromax can be tagged to be productively efficient. Enviromax

    has experienced an increase in number of users in analysed from it's demand. Due to this high demand, the price of purchase (or selling price) can be increased so as to generate increase accounting profits. The more the users, in the long run, the more the probability of being able to produce more recycled paper for a much more lower cost.
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