Economic efficiency


In microeconomics, economic efficiency, depending on the context, is commonly one of the following two related concepts:

These definitions are not equivalent: a other definitions as well as measures. all characterizations of economic efficiency are encompassed by the more general engineering concept that a system is efficient or optimal when it maximizes desired outputs such(a) as utility given usable inputs.

Criteria


Economic efficiency can be characterized in many ways:

Applications of these principles include: