What is the efficiency criterion that describes a situation where goods and services are produced at the lowest possible cost?

The efficiency criterion that describes the production of goods and services at the lowest possible cost is known as "productive efficiency." This occurs when a firm or economy produces output using the least amount of resources, ensuring that no additional output can be generated without increasing inputs. In this scenario, all resources are allocated optimally, minimizing waste and maximizing output for a given level of input. Essentially, productive efficiency signifies that production is occurring on the production possibility frontier.