If a firm is producing a given level of output in a technically efficient manner,then it must be the case that
A)this is the lowest cost method of producing that output.
B)each input is producing its maximum marginal product.
C)this output level is the most that can be produced with the given levels of inputs.
D)both a and c
E)all of the above

Question

Quizplus · Accepted Answer

Technical efficiency means that the firm is maximizing output with the given inputs, but it does not necessarily mean it is the lowest cost method (economic efficiency) or that each input is at its maximum marginal product.

If a Firm Is Producing a Given Level of Output