If Option A costs $40 and yields 20 units of output,and Option B costs $50 and yields 20 units of output,
A) Option B and Option A are equally economically efficient.
B) Option B is economically efficient relative to Option A.
C) Option A is economically efficient relative to Option B.
D) It is not possible to determine which option is more economically efficient.

Question

Quizplus · Accepted Answer

Option A has a lower cost of $40 compared to Option B's cost of $50 to yield the same amount of output. Therefore, Option A is economically efficient relative to Option B as it achieves the same output at a lower cost.

If Option a Costs $40 and Yields 20 Units of Output,and