Mr Beasley chooses to invest in companies that produce goods and services at the lowest possible cost. Mr Beasley is investing in companies that are:

Question

Quizplus · Accepted Answer

Investing in companies that produce goods and services at the lowest possible cost indicates that Mr Beasley is prioritizing productivity efficiency, which means that companies are using their resources in the most efficient way possible to produce goods and services. Allocative efficiency considers whether resources are allocated to the production of goods and services that best meet consumers' needs and wants, which is not necessarily the focus of Mr Beasley's investment strategy. There is also no guarantee that investing in these companies will always result in profits. Therefore, the best choice is A.

Mr Beasley Chooses to Invest in Companies That Produce Goods