Economic efficiency entails
A) producing a given amount of output with the most expensive mix of inputs.
B) producing a given amount of output with the least number of inputs.
C) producing a given amount of output with the most inputs.
D) producing a given amount of output with the cheapest mix of inputs.

Question

Quizplus · Accepted Answer

Economic efficiency is achieved when a given amount of output is produced using the cheapest mix of inputs. This is because minimizing the cost of production for the same level of output maximizes profits for the firm. Therefore, option D is the correct choice.

Economic Efficiency Entails