A Firm Is Said to Be Productively Efficient If _____

question 111

Multiple Choice

A firm is said to be productively efficient if _____

• A)it produces its output at the lowest possible cost.
• B)it sells its product at the lowest possible price.
• C)it earns a positive economic profit.
• D)it produces what consumers demand.
• E)it earns a normal profit in the short run.

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Definitions:

Sample Size

The number of observations or data points collected or selected from a population for the purpose of statistical analysis.

Sample Proportion

A statistic that estimates the fraction of the total population that exhibits a specific attribute, calculated from a sample.

Standard Error

A statistical measure that estimates the accuracy with which a sample distribution represents a population by using standard deviation.

Random Sample

A subset of a statistical population in which each member has an equal chance of being chosen.