Question

When a firm produces a specific output level at a higher cost than the necessary cost for that level of output, it is called?

Answer 1

When a firm produces a specific output level at a higher cost than the necessary cost for that level of output, it is called: x-inefficiency.

What is  x-inefficiency?

X-inefficiency can be defined as the process in which a company or an organization cost of production is higher.

A company or an organization can be classified as x Inefficiency when their cost of production or average cost of production is on the high side  and this may occur due to lack of competitors or lack of competition.

Therefore when a firm produces a specific output level at a higher cost than the necessary cost for that level of output, it is called x-inefficiency.

Learn more about x-inefficiency here:brainly.com/question/22716030

#SPJ1