The Most Efficient Combination of Resources in Producing a Given

question 64

Multiple Choice

The most efficient combination of resources in producing a given output is the combination that:

• A) comes closest to using the same quantities of land,labor,capital,and entrepreneurial ability.
• B) minimize the cost per unit of output.
• C) uses the smallest total quantity of all resources.
• D) conserves most on the use of labor.

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Definitions:

Specialize

The process of focusing effort and resources on a particular area of expertise or production to increase efficiency and output.

Production Possibility Frontiers

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology, illustrating the trade-offs and opportunity costs.

Opportunity Cost

Abandoning potential gains available from alternative choices when one is picked.

Bushel

A unit of volume that is used primarily in agriculture, specifically for measuring volumes of dry goods such as grains and fruits.