Explain could both methods be technically efficient

Assignment Help Econometrics

Reference no: EM13210330

One farmer can grow 1,500 bushels of corn on 2 acre of land with 300 hours of labor and 25 pounds of seed. Another farmer can grow 1,500 bushels of corn on 1 acre of land with 200 hours of labor and 25 pounds of seed.

1. Could both methods be technically efficient?
A.Technical efficiency cannot be compared in this instance.
B. Because the second farmer can produce the same amount of corn with fewer inputs, both methods cannot be technically efficient.
C. Both of these methods are technically efficient; many different production processes can be technically efficient.

2.Is it possible that both of these production processes are economically efficient?
A. Both could be economically efficient; the answer depends on the price of corn.
B. It is not possible for both to be economically efficient because the first farmer uses more total inputs than the second farmer.
C. It is not possible for both to be economically efficient because the first farmer is more technically efficient than the second farmer.
D. Both could be economically efficient; the answer depends on the cost of each input.

Reference no: EM13210330

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