Final answer:
The productivity of a company is effective and efficient if its goals are achieved without wasting resources. Productive inefficiency and allocative inefficiency both lead to wastage; the former by producing less than possible with available resources, and the latter by failing to meet consumer demands optimally. The correct option is B.
Step-by-step explanation:
The productivity of a company is deemed effective and efficient if B. Goals are achieved and resources are not wasted. When a company achieves its goals without wasting resources, it demonstrates both productive and allocative efficiency.
Productive inefficiency is a situation where resources are used in such a way that less goods and services than capable are produced. On the other hand, allocative inefficiency is also wasteful because it means resources are not being used to produce the goods and services most desired by society.
When an economy exhibits allocative inefficiency, it fails to allocate resources to where they are needed most, resulting in suboptimal production and consumption patterns that do not maximise societal welfare. Hence, just like productive inefficiency, allocative inefficiency leads to waste as it does not make the best use of available resources in meeting consumer preferences and demands.