Productive Efficiency
The concept describes how productive efficiency enables companies to produce goods and services at the lowest cost. Using case studies from across industries and countries, it explains the strengths and drawbacks of the concept and provides a series of useful steps and success factors to implement and measure productive efficiency.
Technique Overview
Productive Efficiency Definition
Productive efficiency is the condition that exists when production uses the least cost combination of inputs. In the long run, it is the minimum average cost. Productive efficiency is reached when a company produces at the minimum cost, a situation that is achieved under perfect competition (McEachern, 2011).
Productive Efficiency Description *
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Business Evidence
Strengths, weaknesses and examples of Productive Efficiency *
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Business Application
Implementation, success factors and measures of Productive Efficiency *
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Professional Tools
Productive Efficiency videos and downloads *
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Further Reading
Productive Efficiency web and print resources *
Productive Efficiency references (4 of up to 20) *
- Alvarez, R., Crespi, G. (2003) Determinants of Technical Efficiency in Small Firms, Small Business Economics, 20(3), 233-244.
- Anderton (2000) Economics (3rd ed.), Pearson, London.
- Bathwal, R, (2000) Industrial Economics (2nd ed.), New Age International, New Delhi.
- BusinessWeek, 2011. AMR in Stalemate in Bid for $800 Million Labor Savings. Sep 29. Available at:
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