Which of the Following Describes a Situation in Which a Good

question 54

Multiple Choice

Which of the following describes a situation in which a good or service is produced at the lowest possible cost?

• A)productive efficiency
• B)allocative efficiency
• C)marginal efficiency
• D)profit maximization

---

Definitions:

Collateral

The property that is subject to a secured interest.

Perfection

In finance and law, the process of securing a security interest in collateral through legal documentation and registration.

First Claim

The priority right to make a demand or assert a right before others; often used in financial contexts, such as creditors having first claim on assets.

Purchase-Money Security Interest

A legal claim that allows a lender to repossess or foreclose on property if the borrower fails to repay a loan used to purchase the property.