A production is technique is technically efficient if ?
Correct answer: C. there is no way to make a given output using less of one input and no more of the other inputs
- A. output is maximized
- B. inputs are minimized
- C. there is no way to make a given output using less of one input and no more of the other inputs
- D. Costs are minimized
Explanation
Technical efficiency means producing a given output with no possibility of reducing one input without increasing another. Cost minimization is economic efficiency, because it also depends on input prices.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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