Productive Efficiency Is Achieved When

question 130

Multiple Choice

Productive efficiency is achieved when

• A)firms add a low profit margin to the goods and services they produce.
• B)firms produce the goods and services that consumers value most.
• C)firms produce goods and services at the lowest cost.
• D)there are no shortages or surpluses in the market.

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Definitions:

Debt Holders

Individuals or entities that have invested by lending money to another party, expecting repayment plus interest.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, making them partial owners of the company.

Receivables Turnover

A financial metric indicating how often a company collects its average accounts receivable within a certain period, measuring the efficiency of credit sales collection.

Profit Margins

A financial metric used to evaluate a company's financial health by revealing the percentage of revenue that exceeds the costs of goods sold.