Consider an industry or a firm or product that has disappeared from the market as a result of allocative efficiency and creative destruction and replaced by another industry or a firm or product. Discuss the pros and cons of this process for your choice of industry or a firm or product

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Productive and Allocative Efficiency Analysis

Productive efficiency, also referred to as production efficiency is a term in economics describing the level at which a company is operating at its maximum capacity. Beyond this point, the entity will be unable to manufacture any additional goods without cutting down another product’s production level. This occurrence is an outcome of production happening alongside a Production Possibility Frontier (PPF).