Which of the following statements is true? I. A firm that is not economically efficient does not maximize profit.
II) Economic efficiency depends on the relative costs of resources.
III) A technological efficient firm is also economically efficient.

Question

Quizplus · Accepted Answer

Statement I is true, as economic efficiency is important for profit maximization. 
Statement II is also true, as economic efficiency is about using resources in the most cost-effective manner. 
However, statement III may not necessarily be true, as a firm may be technologically efficient but still incur high costs, leading to a lack of economic efficiency.

Which of the Following Statements Is True? I