If a Firm Is Producing a Given Level of Output

question 35

Multiple Choice

If a firm is producing a given level of output in a technically efficient manner,then it must be the case that

• A)this is the lowest cost method of producing that output.
• B)each input is producing its maximum marginal product.
• C)this output level is the most that can be produced with the given levels of inputs.
• D)both a and c
• E)all of the above

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Definitions:

Success Secrets

Strategies or insights considered instrumental in achieving personal or professional success.

Incentives

Have two pieces: a performance evaluation metric, like sales, profit, or investment return, and a reward scheme that rewards better performance, like a bonus, the promise of a promotion, or a commission. Performance evaluation metrics can be objective or subjective.

Supplier Power

The influence suppliers have over the market or customer base, often due to lack of competition, affecting prices, quality, and availability.

Sourcing Inputs

Involves the process of finding and obtaining the necessary resources, materials, or components required to manufacture a product or provide a service.