Mrs.Lovejoy decides to invest in companies which she believes are producing its goods based on the preferences of consumers.Mrs.Lovejoy is investing in companies that are

Question

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Mrs. Lovejoy is investing in companies that are producing goods based on consumer preferences, which means the companies are allocating their resources to produce the goods that consumers want. This indicates that the companies are allocatively efficient, but we cannot determine whether they are productively efficient or always profitable from this information alone.

MrsLovejoy Decides to Invest in Companies Which She Believes Are