X-efficiency is a concept which measures the divergence between the actual operating costs and the lowest possible operating costs of a financial services firm if it is operating under maximum efficiency.

Question

Quizplus · Accepted Answer

X-efficiency refers to the difference between actual operating costs and the minimum possible operating costs that a firm could achieve if it operated at maximum efficiency. Therefore, the statement is true.

X-Efficiency Is a Concept Which Measures the Divergence Between the Actual