What Is Economic Efficiency?

Business & Management
#1

When all commodities and factors of production in an economy are dispersed or assigned to their most valued uses, waste is eliminated or reduced, the economy is said to be efficient.
Economic efficiency refers to a condition of affairs in which all resources are distributed efficiently to best benefit each individual or institution while reducing waste and inefficiency. Any adjustments made to benefit one entity would damage another when an economy is economically efficient. In terms of production, items, as well as variable inputs, are produced at the lowest feasible cost.

#2

Economic Efficiency is a state where are every resource is allocated optimally so that each person is served is the best possible way and inefficiency and waste are minimised. While there is general definitions, lest look some other factors often used described this term. 1. Production of Goods is at its lowest cost.