Question

Quantitative measures of managerial success, such as production targets or quotas, are highly foolproof and are thus ideal to use in raising economic efficiency. true or false

Answer 1

The correct answer is False

This question is false, as this is not an example of measures that can increase economic efficiency.

Economic efficiency is defined between two or more production processes, it is the one that makes it possible to produce the same quantity of product at a lower production cost.

The production function is the technical relationship between the physical quantity of factors of production and the physical quantity of the product in a given period of time. This function assumes that technical efficiency has been met and should not be confused with the supply function, which is an economic concept, as it relates production to the prices of production factors, whereas the production function is a more physical or technological concept, because it refers to the relationship between physical quantities of products and factors of production.