ftwcfa

optiix Wrote:
-------------------------------------------------------
> They are both technologically efficient in your
> example. If PP2 had used 1M and 5L, than it would
> have been technologicvally inefficient, because
> there was possibility to produce the same thing
> using the same quantity of M but less L (PP1 in
> your example). Now PP2's bigger quantity of labor
> is compensated by no usage of mashine. But, for
> example, If there had been PP3, which produced
> with 0M and 4L, then PP2 would have been
> technologically inefficient. I think in CFAI
> 104-107 pages is good explanation.

So you mean to say we can not blindly look at the number of inputs but have to compare individual resources to see if any process could be there which could produce the same quantity with less number of inputs of that particular resource? Do we compare efficiency for only two types of resources M and L or do we have any other resources as well? As far as I understand from your post if two processes are not comparable like if these two processes use only M and other one only L then both will be technologically efficient as long as there is no alternate process which can produce with either less L or M.