MANAGEMENT

Previous
Next

BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Efficiency is generated by:
A
maximising returns for minimal costs
B
increasing the number of inputs and outputs
C
lowering costs of production
D
increasing competitiveness in the market
Explanation: 

Detailed explanation-1: -Economic efficiency is maximized when price (P) from selling the product is equal to marginal cost (MC) of producing it. Caption: Efficiency maximization. P = MC. When price (P) is equal to marginal revenue (MR), both profit and efficiency are maximized.

Detailed explanation-2: -Answer and Explanation: Efficiency is the relation between returns and cost. The statement is true. Efficiency is normally used when determining how the available resources have been utilized. This is mainly accomplished by comparing returns to the costs incurred.

Detailed explanation-3: -Efficiency can be expressed as a ratio by using the following formula: Output รท Input. Output, or work output, is the total amount of useful work completed without accounting for any waste and spoilage. You can also express efficiency as a percentage by multiplying the ratio by 100.

Detailed explanation-4: -assertion that economic efficiency has three components, technical or productive, allocative and dynamic.

There is 1 question to complete.
Previous
Next