Which of the Following Describes a Situation in Which a Good

question 160

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 maximisation

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Definitions:

Carrying Costs

Expenses related to holding inventory, including storage costs, insurance, and loss due to obsolescence.

Market Share

The proportion of the entire sales volume in a market that is held by a specific brand, product, or company.

Pricing Objective

Goals that a company wants to achieve through the pricing of its products or services, such as maximizing profit, increasing market share, or discouraging competition.

Product Managers

Individuals responsible for the strategy, roadmap, and feature definition for a product or product line, and for overseeing its development, launch, and ongoing improvement.