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Efficiency in production means

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Efficiency in production means

A.

Reducing the size of the work force

B.

Producing a given output with the lowest cost of combination of factors of production

C.

Adoption of capital intensive technology

D.

Increasing the quantity of the fixed factors of production

Correct answer is B

Efficiency of production means that an entity is operating at maximum capacity, where a firm is focused more on increasing the quantity being manufactured while reducing cost.