Microeconomics
Microeconomics
10th Edition
ISBN: 9781259655500
Author: David C Colander
Publisher: McGraw-Hill Education
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Chapter 12, Problem 1QE
To determine

Explain the difference between technical efficiency and economic efficiency.

Expert Solution & Answer
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Explanation of Solution

In production, technical efficiency means that small inputs as possible are used to produce a given output. Economic efficiency refers to using the method that produces a given level of output at the lowest possible cost.

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