What does efficiency mean?

The term "efficiency" refers to the peak level of performance that uses the least amount of inputs to achieve the highest amount of output. Efficiency requires reducing the number of unnecessary resources used to produce a given output, including personal time and energy.

What are the different types of efficiency?

Efficiencies can be divided into many different categories. We've outlined some of the key types below, including economic efficiency, market efficiency, and operational efficiency. Economic efficiency refers to the optimization of resources to best serve each person in that economic state.

When a unit of goods is considered economically efficient?

Production of a unit of goods is considered to be economically efficient when that unit of goods is produced at the lowest possible cost. Economics by Parkin and Bade give a useful introduction to the difference between economic efficiency and technological efficiency: