Which of the following statements is correct?
A) Technological efficiency depends on the relative costs of resources.
B) Economic efficiency occurs when the firm produces a given output at the least cost.
C) A firm can be economically efficient without being technologically efficient.
D) Economic efficiency depends only on production methods.

Question

Quizplus · Accepted Answer

Economic efficiency is achieved when a firm produces a given output at the lowest possible cost. This means that the firm is utilizing its resources in the most efficient way possible. Technological efficiency, on the other hand, refers to the use of the most advanced and sophisticated technology to produce a given output. It depends on the relative costs of resources and may not necessarily lead to economic efficiency. A firm can be technologically efficient without being economically efficient if it is using expensive resources that do not lead to cost savings. Economic efficiency depends on both production methods and resource costs.

Which of the Following Statements Is Correct