Productive Efficiency (At the Level of the Firm)is a Goal

question 122

Multiple Choice

Productive efficiency (at the level of the firm) is a goal that is sought

• A)by profit-maximizing firms in all market structures.
• B)only by perfectly competitive firms.
• C)only by profit-maximizing imperfectly competitive firms.
• D)by no firms in any market.
• E)only by profit-maximizing firms in an oligopolistic market structure.

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Definitions:

Selling and Administrative Expenses

the combined total of all costs associated with selling a company’s products and managing the company, excluding direct costs of producing goods or services.

Period Costs

Expenses that are not directly tied to product production and are recorded as expenses in the period in which they are incurred, such as selling and administrative expenses.

Value Chain

The full range of activities that businesses go through to bring a product or service from its conception to its end use by consumers.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the product.