The diagram illustrates the average cost curves of a firm. If the firm were to move from point X to Y, what is most likely to occur to this firm’s productive efficiency and x-inefficiency?
- Aproductive efficiency decreases; x-inefficiency decreases
- Bproductive efficiency decreases; x-inefficiency increases
- Cproductive efficiency increases; x-inefficiency decreases
- Dproductive efficiency increases; x-inefficiency increases