A Firm Has Achieved Technological Efficiency Whenever It Has

question 332

Multiple Choice

A firm has achieved technological efficiency whenever it has

• A) fully depreciated all its assets.
• B) produced the given output using the fewest inputs.
• C) produced the given output at the lowest cost.
• D) all of the above.

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Definitions:

Variable Input

An input in the production process that changes in quantity with the level of output, such as raw materials or labor hours.

Wage

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, made by an employer to an employee.

Marginal Product

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

Profit Maximize

The process by which a company determines the price and output level that returns the greatest profit, taking into account costs and demand.