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:

Supervisory Costs

Expenses related to the oversight and management of employees or production processes.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, useful for planning and controlling costs.

Responsibility Reports

Financial reports that measure the performance of departments and managers within an organization, emphasizing accountability.

Investment Center

A business unit or division that is responsible for its own revenues, expenses, and assets, and is evaluated based on its return on investment.