Efficient use of two inputs in the production process will depend on:

Question

Quizplus · Accepted Answer

Efficient use of inputs requires consideration of both their prices and productivity. High productivity inputs may be more efficient, but if their price is too high, it may be more cost-effective to use a lower productivity input that is cheaper. Conversely, a low-priced input may seem desirable, but if its productivity is too low, it may end up being more expensive in the long run due to increased production time or lower quality output. Therefore, the prices and productivity of both inputs need to be considered to determine the most efficient use of inputs in the production process.

Efficient Use of Two Inputs in the Production Process Will