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.

Question

Business

Guest

9 January, 15:52

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.

+2

Answers (1)

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Asher Rice · Answer 1

Option (b) is correct.

Explanation:

(a) If a producer uses the almost same quantities of all the factors of production and if marginal output remains the same then this will lead to no gains.

(b) This is done by purchasing the combination of inputs which are yielding higher marginal outputs.

(c) This would result in a loss because all the resources are not utilized properly or we can say that resources are not used at their potential.

(d) For achieving the level of profits, labor should be devoted to the work for maintaining the higher level of growth in production.