Technologically efficient production plans are also economically efficient.

Question

Quizplus · Accepted Answer

Technologically efficient production plans refer to producing the maximum output from a given set of inputs, but they do not necessarily consider the costs of those inputs. Economically efficient production plans, on the other hand, take into account the costs of inputs and aim to produce goods at the lowest possible cost. Therefore, a technologically efficient plan may not be economically efficient if it uses expensive inputs when cheaper alternatives are available.

Technologically Efficient Production Plans Are Also Economically Efficient