To Achieve Allocative Efficiency,firms _____

question 77

Multiple Choice

To achieve allocative efficiency,firms _____

• A)strive to minimize their fixed costs.
• B)strive to maximize their profits.
• C)produce at their minimum long-run average cost.
• D)produce at their minimum long-run marginal cost.
• E)produce the output consumers value most.

---

Definitions:

Off-Balance-Sheet Financing

A form of financing in which companies do not record certain assets or liabilities on the balance sheet to improve financial ratios and maintain compliance with debt covenants.

Current Liability

This represents a company's debts or obligations that are expected to be paid off within a year, including accounts payable, short-term loans, and accrued expenses.

Long Term

Refers to assets, liabilities, or investments that are expected to last or be in use for a period longer than one year.

Noncurrent Debt

A liability not requiring payment within the current fiscal year, typically extending beyond one year.