Question

1. What is the producer’s problem (or a firm’s goal) in microeconomics?

2. A firm achieving its goal also achieves economic efficiency.

1. How is economic efficiency defined?

2. How does it differ from technological efficiency?

Answer 1

the goal of a firm is tomaximize the profit , the firm's goal is to determine pricing and demand within the market and allocate resources to maximize net profits,

economic efficiency is when all goods and factors of production in an economy are distributed or allocated to their most valuable uses and waste is eliminated. it can involve efficient production decisions within firms , productive firms seek to maximize their profits by bringing in the most revenue while minimizing costs to do this they choose the combination of inputs that manimize their costs while producing as much output as possible.

technical efficiency happens when there is no possibility to increase the output without increasing the input while the economic effiency happens when the productioncost of an output is as low as possible

economic efficiency mainly depends on the prices related ti the factors of production while the technical effeciency is considered an engineering matter

it is also said that some things that are technically efficient may not be economically efficient.