Which of the following is a correct statement?
A) Economic efficiency definitely occurs when a firm cannot increase production without using more resources.
B) Technological efficiency depends on the costs of resources while economic efficiency depends on only production methods.
C) Technological efficiency depends only on production methods, while economic efficiency depends on the costs of resources.
D) all of the above

Question

Quizplus · Accepted Answer

Technological efficiency refers to producing a good or service using the least amount of resources possible, while economic efficiency refers to producing a good or service at the lowest possible cost. Therefore, technological efficiency is only dependent on production methods while economic efficiency takes into consideration the costs of resources used as well. Option A is incorrect because economic efficiency can still occur even if a firm can increase production without using more resources, as long as the cost of producing each additional unit does not increase. Option B is incorrect as it confuses technological efficiency with economic efficiency. Option D is incorrect as only option C is correct.

Which of the Following Is a Correct Statement