Difference between technical efficiency and economic efficiency
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Technical efficiency in production means that as few inputs as possible are used to produce a given output. economic efficiency means using the method that produces a given level of output at the lowest possible cost.
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Economic efficiency is a related but distinct concept. Technical efficiency aims to minimize inputs, but economic efficiency aims to minimize costs, which might or might not require fewer inputs. In other words, the business aims to lower costs as much as possible while still hitting a production goal.
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