waldziuchna

Tech efficency is using the least amount of inputs.
Economic efficency is whatever method with the lowest cost.

Machine Labor // TOTAL INPUTS // TOTAL COST

A 10 5 // 15 // $150

B 12 4 // 16 // $160

C 13 1 // 14 // $140


C is most technoligcly efficent, because it uses the least inputs, HOWEVER "A" is also technologiclly efficient because it uses less inputs than B. That being said, C is the MOST technologiclly efficient method of production

Throw out a cost of machine ($100) and Labor ($10) you see that "C" is also the most economiclly efficient method because it costs only $140, which is the lowest cost between all 3 alternatives



Edited 2 time(s). Last edit at Tuesday, December 1, 2009 at 01:37PM by mbolzicco.