Assume that Magentum production was efficient in the past. A total of 1,500 farms produced the fruit needed to make 10 million gallons of Magentum each year. The number of farms has not increased. The amount of fruit produced by each farm has decreased by 50%. The amount of Magentum produced under these conditions was 11 million gallons. So, there's less Mag fruit but more finished product. Applying the ideas of production efficiency to analysis of this issue, if the business owners are producing more Magentum and they have fewer of the old inputs (namely Mag fruit) to work with, they must be using other inputs. True False