The most efficient combination of resources in producing a given output is the combination that
A)comes closest to using the same quantities of land, labor, capital, and entrepreneurial ability.
B)minimizes the cost per unit of output.
C)uses the smallest total quantity of all resources.
D)conserves most on the use of labor.

Question

Quizplus · Accepted Answer

Minimizing the cost per unit of output is the definition of efficiency in the context of resource allocation. This means using resources in a way that achieves the desired output at the lowest possible cost, which is the essence of economic efficiency. Choices A, C, and D do not necessarily lead to the most efficient combination of resources for producing a given output.

The Most Efficient Combination of Resources in Producing a Given