Definition of Economic efficiency
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Economic efficiency Definition from Science & Technology Dictionaries & Glossaries
A measure of how well economic inputs (capital, labour, etc.) are combined to produce a given output. Economic efficiency is maximised when inputs are combined so as to produce the required output at minimum cost personsFAO
Economic efficiency Definition from Encyclopedia Dictionaries & Glossaries
Wikipedia English - The Free Encyclopedia
In economics, the term economic efficiency refers to the use of resources so as to maximize the production of goods and services. An economic system is said to be more efficient than another (in relative terms) if it can provide more goods and services for society without using more resources. In absolute terms, a situation can be called economically efficient if:
- No one can be made better off without making someone else worse off (commonly referred to as Pareto efficiency).
- No additional output can be obtained without increasing the amount of inputs.
- Production proceeds at the lowest possible per-unit cost.
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