Technological Efficiency Means That

question 64

Multiple Choice

Technological efficiency means that

• A) technology is constantly improving in this industry
• B) there are economies of scale in this industry
• C) the same inputs could not be purchased at a lower cost
• D) the same output could not be produced with fewer resources
• E) the same output could not be produced at a lower cost

---

Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, reflected as a charge against earnings.

Installment Payments

Periodic payments made over a set period of time to pay off a loan or purchase.

Fixed Interest Rate

An interest rate on a liability, such as a loan or mortgage, that remains the same throughout the term of the loan.

Bond Redemption

The process of repaying the face value of a bond upon its maturity, thereby fulfilling the issuer's obligations to the bondholders.