Technically inefficient points are:
A)points in the production set but not on the production function.
B)points on the production function.
C)points contained in neither the production set nor the production function.
D)points that are never observed in practice.

Question

Quizplus · Accepted Answer

Technically inefficient points are those that are in the production set (i.e. all feasible combinations of inputs) but not on the production function (i.e. the set of technically efficient combinations of inputs). This means that these points represent input combinations that do not achieve the highest level of output possible given the technology. Points on the production function are technically efficient but not all points in the production set will be on the production function. Points contained in neither the production set nor the production function are not relevant to production possibilities. Points that are never observed in practice are not necessarily technically inefficient.

Technically Inefficient Points Are