A firm was manufacturing its goods with an average cost of $14. It then achieves the same output at a lower average cost by using different production methods. The price is still above the marginal cost. In what ways has this firm become more efficient?
- Aallocative efficiency: no; dynamic efficiency: no
- Ballocative efficiency: no; dynamic efficiency: yes
- Callocative efficiency: yes; dynamic efficiency: no
- Dallocative efficiency: yes; dynamic efficiency: yes