Efficiency Is

question 58

Multiple Choice

Efficiency is:

• A) defined as the time it takes to produce a product.
• B) the quantity of inputs required to produce an output.
• C) independent of customers' perception of a product's value.
• D) measured by looking at a product's price.
• E) lower when the output is high-quality.

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Definitions:

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, while keeping other inputs constant.

Marginal Product

The increase in output resulting from the addition of one more unit of a certain input, while all other inputs are kept constant.

Units Per Period

A measure of productivity or output over a given time frame, indicating the number of units produced or sold.

Diminishing Marginal Returns

The principle that adding more of one factor of production, while holding others constant, will eventually yield lower additional outputs.