ENTREPRENEURIAL PLANNING
OPERATIONS PLANNING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Efficiency may be defined as:
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a firm’s ability to turn inputs into outputs
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the ability of a firm to meet its objectives by using inputs productively to meet the needs of customers
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a firm’s ability to reduce its labour needs
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a firm’s ability to make profit.
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Explanation:
Detailed explanation-1: -the state or quality of being efficient, or able to accomplish something with the least waste of time and effort; competency in performance. accomplishment of or ability to accomplish a job with a minimum expenditure of time and effort: The assembly line increased industry’s efficiency.
Detailed explanation-2: -Firm-level efficiency (hereafter ‘firm efficiency’) – the efficiency with which a firm converts its input into output – is an important element in asset pricing (e.g., Cochrane, 1991). If two firms use the same amount of inputs to produce an output, the firm that can produce more output is more efficient.
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