economic vs technological efficiency economic, efficient, efficiency, 1000

hanvinh

Help!

It says in some review notes that a process is not technologically efficient, it cannot be economically efficient. But what if one of the inputs is extremely costly?

Consider this example ( i know the numbers are extreme, but bear with me): You can make a product with either 1000 labor hours, or 1 labor hour and 1 machine hour. The machine is some super-duper expensive monstrosity, and costs $100 million to to run for 1 hour. Labor costs $10 per hour.

Sooooo, using 1000 labor hours would be economically efficient (because it costs less) but NOT technologically efficient, because it uses more inputs......right?

So did i just prove that a process can be economically efficient, but not technologically efficient? I know i'm misunderstanding the concept, but I can't help but think of it this way.

HELP!!!