Which One of the Following Statements Is True

question 104

Multiple Choice

Which one of the following statements is true?

• A)All technologically efficient methods are also economically efficient.
• B)All economically efficient methods are also technologically efficient.
• C)Technological efficiency changes with changes in relative input prices.
• D)Technologically efficient firms will be more likely to survive than economically efficient firms.
• E)none of the above

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Definitions:

Output Market

The marketplace in which final goods or services are offered to consumers, businesses, and other entities.

Output Effect

A phenomenon where changes in price level influence the quantity of goods and services produced in an economy due to the alteration in profitability of goods sold.

Price Effect

The impact on consumer demand or supply of goods due to changes in the price of those goods or related goods.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, or prohibitions.