Production Efficiency


Production Efficiency
1. An economic level at which the economy can no longer produce additional amounts of a good without lowering the production level of another product. This will happen when an economy is operating along its production possibility frontier.

2. The ability to produce a good using the fewest resources possible. Efficient production is achieved when a product is created at its lowest average total cost.

1. Production efficiency measures whether the economy is producing as much as possible without wasting precious resources. Theoretically, production efficiency will include all of the points along the production possibility frontier, but this is difficult to measure in practice.

2. Because resources are limited, being able to make products efficiently allows for higher levels of production. If the economy can't make more of a good without sacrificing the production of another, then a maximum level of production has been reached.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Production leveling — Production leveling, also known as production smoothing or – by its Japanese original term – heijunka (平準化?),[1] is a technique for reducing the muda waste and vital to the development of production efficiency in the Toyota Production System and… …   Wikipedia

  • Production biologique d'hydrogene par des algues — Production biologique d hydrogène par des algues Production d hydrogène par des algues. La production biologique d hydrogène correspond à la production d hydrogène par des algues au sein de bioréacteurs. Les algues peuvent produire de l hydrogène …   Wikipédia en Français

  • Production biologique d'hydrogène — par des algues Production d hydrogène par des algues. La production biologique d hydrogène correspond à la production d hydrogène par des algues au sein de bioréacteurs. Les algues peuvent produire de l hydrogène sous certaines conditions. On a… …   Wikipédia en Français

  • Production biologique d'hydrogène (Algues) — Production biologique d hydrogène par des algues Production d hydrogène par des algues. La production biologique d hydrogène correspond à la production d hydrogène par des algues au sein de bioréacteurs. Les algues peuvent produire de l hydrogène …   Wikipédia en Français

  • Production biologique d'hydrogène par des algues — Production d hydrogène par des algues. La production biologique d hydrogène correspond à la production d hydrogène par des algues au sein de bioréacteurs. Les algues peuvent produire de l hydrogène sous certaines conditions. On a découvert à la… …   Wikipédia en Français

  • Production–possibility frontier — In economics, a production–possibility frontier (PPF), sometimes called a production–possibility curve or product transformation curve, is a graph that compares the production rates of two commodities that use the same fixed total of the factors… …   Wikipedia

  • Production theory basics — In microeconomics, Production is simply the conversion of inputs into outputs. It is an economic process that uses resources to create a commodity that is suitable for exchange. This can include manufacturing, storing, shipping, and packaging.… …   Wikipedia

  • Production-possibility frontier — In economics, a production possibility frontier (PPF) or “transformation curve” is a graph that shows the different rates of production of two goods that an economy (or agent) could efficiently produce with limited productive resources. Points… …   Wikipedia

  • Efficiency wages — In labor economics, the efficiency wage hypothesis argues that wages, at least in some markets, are determined by more than simply supply and demand. Specifically, it points to the incentive for managers to pay their employees more than the… …   Wikipedia

  • Efficiency Movement — Part of the Politics series on Progressivism Schools American Progressivism Modern liberalism Progressive education Ideas Anti racism Civil liberties …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.