Question

Trent Automobiles Inc. was expecting a large shipment of scrap metal a week earlier. As the shipment did not arrive on time, the supply manager at Trent Automobiles was forced to place another order for the same quantity of scrap metal from a local manufacturer. As a result, its car manufacturing processes got delayed and expenses increased. In this scenario, Trent Automobiles is demonstrating a lack of _____.

Answer 1

Efficiency.

Step-by-step explanation:

Efficiency means that the economy’s resources are Being Used as effectively as possible to satisfy people’s needs and desires.

For production, economic efficiency means the fixed amount of commodity produce in minimum price. So in this condition we can say that the market is efficient. In the market mechanism the producer wants maximum profit. That’s why they produce in minimum cost.

The another side of efficiency is that the amount of production of product should be in a point where the marginal cost and marginal utility are same.