Which one of the following statements is true?
A)All technologically efficient methods are also economically efficient.
B)All economically efficient methods are also technologically efficient.
C)Technological efficiency changes with changes in relative input prices.
D)Technologically efficient firms will be more likely to survive than economically efficient firms.
E)Technological efficiency is more important than economical efficiency.

Question

Quizplus · Accepted Answer

Economically efficient methods are those that achieve the desired output with the lowest possible cost. Technological efficiency refers to the extent to which a firm employs the best technology and production techniques available to produce a given level of output. While there is often overlap between technological and economic efficiency, not all technologically efficient methods will necessarily be economically efficient. Therefore B is the true statement.

Which One of the Following Statements Is True