Efficiency in production means?

  • A reducing the size of the work force
  • B producing a given output with the lowest cost of combination of factors of production
  • C adoption of capital intensive technology
  • D increasing the quantity of the fixed factors of production
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The correct answer is B. producing a given output with the lowest cost of combination of factors of production

Efficiency in production refers to the concept of producing a given output with the lowest cost combination of factors of production.

This means that all resources are being fully utilized to generate the most cost-efficient product possible.

At maximum production efficiency, an entity cannot produce any additional units without drastically altering its production process.

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