Which of the Following Statements Is True

question 6

Multiple Choice

Which of the following statements is true?

• A) Many different production processes can be economically efficient, but only the method that involves the lowest possible cost is technically efficient.
• B) Many different production processes can be technically efficient, but only the method that involves the lowest possible cost is economically efficient.
• C) There is only one production process that is technically efficient, and this process is also economically efficient.
• D) There are many production processes that are both technically and economically efficient, but only one of these involves the lowest possible cost.

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Definitions:

Local Dealerships

Businesses authorized to sell and service vehicles from specific manufacturers within a designated geographic area.

Cheapest Product

The item or service offered at the lowest price among a range of products.

Proximity

The state of being close or near in space, time, or relationship.

Small Business Owner's Product

A product or service that is offered by an entrepreneur owning and running a small-scale business.