Chapter 15, Problem 20E

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)?

1. a. More output is produced using more inputs.
2. b. More output is produced with the same inputs.
3. c. More inputs are used to produce the same output.
4. d. The least costly technically efficient input combination is chosen.