Technically Inefficient Points Are

question 71

Multiple Choice

Technically inefficient points are:

• A)points in the production set but not on the production function.
• B)points on the production function.
• C)points contained in neither the production set nor the production function.
• D)points that are never observed in practice.

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Definitions:

Economic Profit

The total revenue minus explicit and implicit costs; it represents additional income over what could be earned in the next best alternative.

Average Total Cost

This refers to the total cost of production divided by the number of units produced, representing the cost per unit.

Marginal Cost Curve

A graph that shows the relationship between the marginal cost of producing an additional unit of a good or service and the quantity produced.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable on another.