If Productive Efficiency Characterizes a Market

question 69

Multiple Choice

If productive efficiency characterizes a market

• A)the marginal cost of production is minimized.
• B)firms produce the goods that consumers desire most.
• C)the output is being produced at the lowest possible cost.
• D)firms use the best technology available to produce the good.

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Definitions:

Sales Forecast

An estimate of future sales, often based on historical data, current market trends, and forward-looking economic indicators, used for planning and decision-making purposes.

Production Units

The measure of output from a production process, with each unit representing a completed item.

Plant Assets

Long-term tangible assets used in the operation of a business that are not intended for resale, such as machinery, buildings, and vehicles.

Capital Expenditures Budget

The capital expenditures budget outlines the planned spending on assets that have a long term impact on the company, such as buildings, machinery, and equipment.