Choice of technique

Updated: Aug 20, 2021

The choice of method of production where more than one method is possible. A technique is a set of inputs capable of producing a given output or set of outputs. If more than one set of inputs can produce the outputs, a choice of techniques must be made. A profit-maxmizing firm prefers the technique for which the total cost of inputs is the lowest.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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