Answer to Question #258002 in Microeconomics for desteen

Question

17. If a firm is producing a given level of output in a technically-efficient manner, then must be the case that... A. it is choosing the lowest-cost method of producing that output. B. this output level is the most that can be produced with the given levels of inputs. C. each input is producing its maximum marginal product. D. both a and b

Answer 1

A. it is choosing the lowest-cost method of producing that output.

The firm tends to be utilizing combined inputs so as to produce output level. Every input produces maximum product.