Input efficiency:
A) means that holding constant the total amount of each input used in the economy, there is no way to increase any firm's output without decreasing the output of another firm.
B) is not a requirement of Pareto efficiency in a production economy.
C) exists when it is possible to produce more of one good and at least as much of every other good using the same inputs.
D) is the same as efficient efficiency.

Question

Quizplus · Accepted Answer

Input efficiency refers to the optimal use of inputs in production such that it's impossible to increase the output of one firm without reducing the output of another, given a fixed amount of resources. This concept is integral to understanding Pareto efficiency in production, where resources are allocated in a way that no further improvements can be made without disadvantaging someone.

Input Efficiency