If a Firm Chooses to Produce 100 Units of Output

question 329

Multiple Choice

If a firm chooses to produce 100 units of output for $150 with 10 units of labor and 12 units of capital, when they could produce the same 100 units for $120 with 10 units of labor and 8 units of capital, the firm is technologically ________ and economically ________.

• A) efficient; inefficient
• B) inefficient; efficient
• C) efficient; efficient.
• D) inefficient; inefficient