Cost functions define a relationship between cost and output that describes the most ____________ way to produce any given output.
A) efficient
B) expensive
C) sophisticated

Question

Quizplus · Accepted Answer

Cost functions are designed to optimize the production process for any given output by determining the best and most efficient way to produce that output. Therefore, the most appropriate choice is "efficient". "Expensive" and "sophisticated" are not applicable, as they do not necessarily describe the most effective method of production.

Cost Functions Define a Relationship Between Cost and Output That