The efficiency decision involves choosing the input combination or process that
A)Produces the greatest output.
B)Results in the lowest output per dollar of input.
C)Results in the least cost for a given output.
D)Has the lowest ratio of MPP to input.

Question

Quizplus · Accepted Answer

The efficiency decision involves choosing the input combination or process that results in the least cost for a given output. This means that the production process should be optimized in a way that minimizes the cost of producing a certain level of output. By doing so, the firm can maximize its profits or output given a fixed budget for inputs. Therefore, choice C is the best option as it aligns with the objective of minimizing costs while maintaining a particular level of output.

The Efficiency Decision Involves Choosing the Input Combination or Process