If the cost efficiency of input A is 45 pounds per $1 of cost, and the cost efficiency of input B is 40 pounds per $1 of cost, then input A is more cost-efficient than input B.
Answer the following statement true (T) or false (F)
True
Cost efficiency is the amount of output associated with an additional dollar spent on input-the MPP of an input divided by its price (cost). Therefore, because 45 is greater than 40, input A is more efficient.
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