Which of the Following Statements Is True

question 93

Multiple Choice

Which of the following statements is true?

• A) Any technically efficient production process is always economically efficient.
• B) Any economically efficient production process is always technically efficient.
• C) A production process is either economically efficient or technically efficient but never both.
• D) A production process must always be both economically efficient and technically efficient.

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Definitions:

Profit Objective

The goal a business sets to achieve a specific amount of profit within a certain timeframe.

Pricing Objectives

The goals that a company aims to achieve through its pricing strategy, such as maximizing profit, increasing market share, or discouraging competition.

Pricing Constraints

Limitations on the setting of prices caused by factors like competition, cost of production, and regulatory environments.

Estimate Demand

involves predicting the quantity of a product or service that consumers will purchase, which is crucial for inventory management, pricing strategies, and planning production levels.