The key distinction between technological efficiency and economic efficiency is that technological efficiency and economic efficiency a. uses the newest available methods of production; uses the cheapest method of production b. concerns the quantity of inputs used in production for a given level of output; concerns the value of the inputs used c. occurs in larger firms that invest in research and development; occurs in firms that have a smaller scale of production d. occurs when the firm produces a given output at the least cost; occurs when the firm produces a given output by using the least amount of inputs.

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.