According to the Concept of the Production Function,if a Firm

question 19

Multiple Choice

According to the concept of the production function,if a firm is inefficient then it must mean

• A) for the same amount of inputs,the output is less than the production function would have calculated.
• B) for the same amount of output,the number of inputs required is less than the production function would have calculated.
• C) the achieved level of output is exactly the same as the production function would have calculated.
• D) the firm is producing too many outputs.
• E) the inputs are being overused.

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Definitions:

Air Travel

The act of moving from one place to another through the atmosphere, typically using airplanes or other aircraft.

Bus Ticket

A document or electronic confirmation that permits a person to travel on a bus.

Comparative Advantage

is the ability of an entity to produce a good or service at a lower opportunity cost than others, leading to trade benefits.

Opportunity Cost

Overlooking potential advantages by settling on a single alternative.