The extent to which a given set of resources is being allocated across uses or activities in a manner that maximizes whatever value they are intended to produce, such as output, market value, or utility. Contrasts with engineering efficiency, which focuses within a single activity on the output it produces per unit input.
the extent to which managers are able to make optimum use of resources in production by accounting for the relative prices of resources and products; prices are used to select from a number of technically efficient combinations of resources; where market prices do not coincide with community values the result is the selection of products and practices that are socially inefficient
In commercial fishing, the point at which the added cost of producing a unit of fish is equal to what buyers pay. Producing fewer fish would bring the cost lower than what buyers are paying. Producing more fish would raise the cost higher than what buyers are paying. Harvesting at the point of economic efficiency produces the maximum economic yield. See maximum economic yield and economic rent.
a measure of the size of consumer surplus and producer surplus. An increase in the combined surpluses is an increase in economic efficiency.
the allocation of goods to their highest relative economic value.
an allocation of resources that maximizes net social benefits; perfectly competitive markets in the absence of externalities are efficient.
a situation where no one in society can be made better off without making someone else worse off
A situation in which all changes that harm no one and improve the well-being of some people have been accomplished. Such a situation is economically efficient (or Pareto efficient or Pareto optimal); no one can be made better off without hurting someone else.
A state in which the cost of producing a given output is as low as possible and is equal to the price.
The product of allocational and operational efficiency. Allocating resources on the bases of opportunity cost increases the value of current output. Operational efficiency is increased when unit costs of production are minimised through efficient management and the adoption of the appropriate technology
making the best use of your limited resources - land, labor, capital, and management
a requirement that a prescribed objective is achieved at minimum cost and, also, that no alternative allocation of opportunities to use resources would make at least one person feel better off and no person feel worse off.1
The direct and indirect costs of high quality healthcare.
is the maximization of economic welfare.
A criterion for assessing an investment or intervention in an economy. An investment or intervention is said to be economically efficient when it maximizes the value of output from the resources available.
1. Measures the amount of output obtained for a given set of economic inputs. The most desirable economic efficiency is that which produces a given level of output using the fewest economic inputs. 2. A term that refers to the optimal production and consumption of goods and services. This generally occurs when prices of products and services reflect their marginal costs. Economic efficiency gains can be achieved through cost reduction, but it is better to think of the concept as actions that promote an increase in overall net value (which includes, but is not limited to, cost reductions).
A condition that is achieved when resources are used over a given period of time in such a way as to make it impossible to increase the welfare of any person without harming another.
A situation that occurs when the cost of producing a given output is as low as possible.