A firm that is not economically efficient still maximizes profit if the price at which it sells its good or service is high enough. B. A technologically inefficient method is never economically efficient. C. A firm that uses more labor and less capital than another firm cannot be technologically efficient. D. The technologically efficient method is the one that uses a smaller amount of the more expensive resource and a larger amount of the less expensive resource.

Question

Business

Tyshawn Evans

11 December, 04:08

A firm that is not economically efficient still maximizes profit if the price at which it sells its good or service is high enough. B. A technologically inefficient method is never economically efficient. C. A firm that uses more labor and less capital than another firm cannot be technologically efficient. D. The technologically efficient method is the one that uses a smaller amount of the more expensive resource and a larger amount of the less expensive resource.

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Dylan Fernandez · Answer 1

C. A firm that uses more labor and less capital than another firm cannot be technologically efficient

Explanation:

"Technological efficiency" is different from "economical efficiency."

Technological efficiency focuses on having the least amount of inputs in hitting the maximum output. Economical efficiency focuses on having the least amount of cost in hitting a maximum output.

Choice c mentioned about "more labor" so, this shows that it is not technologically efficient because it has more inputs. It should include only the fewest number of labor, since it is the concern of a technologically-efficient firm (and not the cost).

This also shows that a "technologically-inefficient method" can be "economically-efficient."