An Overview of Efficiency and the Production Process
This post will help to further your understanding of the relationship between economic efficiency and the firm’s production process, as part of your Prelim Economics syllabus. In order for businesses to be successful and sustainable, they must be efficient in their production process. In the preliminary economic course, we define efficiency as the optimal allocation of resources such that output is maximised. In other words, if a firm is efficient, they use minimal inputs for maximum output. The video below looks at the different aspects of productivity in an economic landscape.
The video below looks at this in more detail.