Technological Efficiency Is

question 78

Multiple Choice

Technological efficiency is

• A) a necessary and sufficient condition for profit maximization.
• B) a sufficient but not necessary condition for profit maximization.
• C) a necessary but not sufficient condition for profit maximization.
• D) a theoretical construct with little connection to the real world.

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Definitions:

Market Power

The ability of a company or entity to influence the price and production levels in a market.

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs.

Demand Curve

A diagram displaying how the cost of a product is connected to the consumer demand for it.

Cost Functions

A mathematical relationship expressing the cost of production as a function of the quantity of goods produced.