Question: Total productive efficiency is achieved when both technical efficiency and allocative efficiency are achieved. For a given mix of inputs that produce a given output,
Total productive efficiency is achieved when both technical efficiency and allocative efficiency are achieved. For a given mix of inputs that produce a given output, which of the following is consistent with improving technical efficiency (using the given input-output mix as the benchmark)?
- a. More output is produced using more inputs.
- b. More output is produced with the same inputs.
- c. More inputs are used to produce the same output.
- d. The least costly technically efficient input combination is chosen.
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