Efficiency refers to the ability to accomplish something with the least amount of wasted time, effort, or resources.
Related terms
Productivity: Productivity measures how efficiently resources are used in producing goods or services. Higher productivity means achieving more output with the same amount of input.
Economies of scale: Economies of scale occur when larger-scale production leads to lower average costs per unit. This means that as a business grows in size, it becomes more efficient and can produce goods at a lower cost.
Specialization: Specialization refers to individuals, regions, or countries focusing on producing specific goods or services where they have a comparative advantage. By specializing in what they do best, efficiency increases as they become more skilled and experienced in that particular area.