A company does not need to know the price of each resource it employs if it wants to determine whether or not it is achieving
A) technological efficiency.
B) economic efficiency.
C) accounting efficiency.
D) managerial efficiency.

Question

Quizplus · Accepted Answer

Technological efficiency refers to producing the maximum output with the given set of inputs, without considering the cost of those inputs. Therefore, knowing the price of each resource is not necessary to determine technological efficiency.

A Company Does Not Need to Know the Price of Each