Economically v. Technologically Efficient

CFA Level I
#1

If you are economically efficient, does that mean you are technologically efficient and vice versa? Does someone have the rules on this? Thanks!

#2

yes. vice versa - not sure but i dont think so

#3

rehman99 Wrote: ------------------------------------------------------- > If you are economically efficient, does that mean > you are technologically efficient and vice versa? > Does someone have the rules on this? > > Thanks! not sure i know what they mean and that is it. it is why we outsource everything it is econ efficient.

#4

if you are eco efficient, you must be tech efficient, but just b/c you are tech efficient does not mean you are eco efficient. that being said, i couldn’t tell you what either means…

#5

This concept is something which I couldn’t grasp…:slight_smile: Need some example to think through.

#6

tech efficient = producing the most with the lease amount of materials Econ efficient = produce at lowest possible cost

#7

tech efficient 1) given the number of output, the lowest units of input to produce 2) can be more than one combinations if you have more than one input econ efficient 1) given the price of input, the lowest possible cost to produce 2) there is only one combination at the lowest cost 3) must be one of the tech efficient, but not vice versa

#8

thanks guys…I’ve struggled with this one for a while.