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How do you achieve both Technical and Economic Efficiency?

Question:

How do you achieve both Technical and Economic Efficiency?

Technical and Economic Efficiency:

Efficiency in business refers to a situation where all the resources are optimally used to generate more outputs thus enabling the business to earn more profits hence expansion of the business. Technical efficiency is the roadmap to economic efficiency. Technical efficiency in business refers to the process by few inputs in the production process are used to produce a given level of output. Besides, economic efficiency in refers to the process by which all the resources are optimally used in a firm or an economy to maximize the outputs hence reducing wastage of resources.

Answer and Explanation:

Technical efficiency aims mainly using fewer inputs the produce a given level of output. One of the inputs required in production is labor, proper...

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Economic Efficiency: Definition & Examples

from Intro to Business: Help and Review

Chapter 3 / Lesson 33
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