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.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
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.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
Decrease returns to scale means that _____ as ______?
If a firm is not operating at the output necessary to achieve all scale economies, it has not achieved its ?
The firms long run output decision will be where ?
In marketing "USP" stands for ?
If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause ?
If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?