Final answer:
The question involves understanding productive and allocative efficiency, with effectiveness being the correct answer as it relates to successfully achieving desired outcomes in new product evaluation and the use of extra capacity.
Step-by-step explanation:
The question pertains to the concept of how productive efficiency and allocative efficiency demonstrate the value of extra capacity and new product evaluation. Productive efficiency refers to a scenario where it is impossible to produce more of one good without decreasing the production of another.
This is seen on a production possibility frontier (PPF) where any point on the curve (like B, C, and D) shows productive efficiency. On the other hand, allocative efficiency is about whether the specific mix of goods being produced is what society most desires.
In the context of the student's question, the correct answer that shows us the value of extra capacity and new product evaluation is likely effectiveness. This is because effectiveness generally pertains to the degree to which something is successful in producing a desired result, which in this case can relate to how new products meet desired outcomes or how additional capacity contributes to meeting demand.