Concept:Production efficiency means getting the maximum possible output from the least expensive combination of inputs.
Explanation:A firm is efficient in production when it produces a specific quantity of goods at the lowest possible cost.
This requires choosing the best mix of factors such as labour, capital, land, and entrepreneurship to minimise total cost.
Merely reducing the number of workers does not make production efficient if output also falls.
Using capital-intensive technology is not always efficient if capital costs more than the labour it replaces.
Increasing fixed factors only expands capacity; it does not necessarily lower the cost of producing each unit.
The central idea is the least-cost combination of resources for a given output level.
This is known as economic efficiency in production.
Answer:B. producing a given output with the lowest cost of combination of factors of production.