Which of the following factors may lead to productive efficiency?

Productive efficiency is achieved when a firm produces its goods or services at the lowest possible cost. Improving technology and processes directly contributes to this by enabling firms to utilize resources more effectively, reduce waste, and enhance productivity. When technology is upgraded or processes are optimized, firms can produce the same output with fewer inputs or increase output without a corresponding increase in input costs. This leads to lower average costs and maximizes resource utilization, which is the essence of productive efficiency.

The other factors, while potentially related to market dynamics or workforce decisions, do not fundamentally ensure productive efficiency on their own. For example, a higher market price may allow firms to earn more profit but does not necessarily translate into lower production costs or improved operational efficiency. Reducing the number of workers might lead to cost savings in some cases, but it can also compromise productivity if it results in insufficient labor to meet production needs. Lastly, increasing demand for luxury goods can boost sales and revenue but does not inherently improve the efficiency of the production process. Hence, the improvement of technology and processes stands out as the key driver of productive efficiency.