Which One of the Following Statements Is Not True

question 21

Multiple Choice

Which one of the following statements is not true?

• A)A production process is technologically efficient only if it is producing a given output at the lowest possible cost.
• B)If a process is economically efficient, it must be technologically efficient as well.
• C)Economic efficiency depends on the relative price of inputs, while technological efficiency does not.
• D)Economically efficient firms will be more likely to survive than economically inefficient firms.
• E)Technologically efficient firms are more likely to survive than technologically inefficient firms.

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Definitions:

First-in

This principle dictates that the earliest goods to be added to inventory are the first ones to be removed from it, commonly applied in financial and inventory management.

Conversion Costs

The sum of labor and overhead costs that are necessary to convert raw materials into finished products.

Equivalent Units

Equivalent units is a concept in cost accounting used to allocate costs to partially completed goods, converting them into the amount of finished goods units.

Weighted-average

A calculation that takes into account the varying degrees of importance or quantities of different items in a data set, providing a figure that reflects their proportional contributions.