16-69 Which of the following best describes X-inefficiencies?
A)The average cost of production decreases as the level of output increases.
B)The effects on costs related to managerial ability and other hard-to-quantify factors.
C)Cost savings are realized from using many of the same inputs to produce multiple products.
D)The average cost of production increases as the level of output increases.
E)Cost increases are realized from using many of the same inputs to produce multiple products.

Question

Quizplus · Accepted Answer

X-inefficiencies refer to the costs related to managerial ability and other hard-to-quantify factors that can lead to an increase in average cost of production even as output increases.

16-69 Which of the Following Best Describes X-Inefficiencies