economic efficiency

economic efficiency definition - business

economic efficiency

Utilizing resources in a manner that results in the greatest value of output. A system is characterized by economic efficiency if goods, services, and resources flow to those who will pay the highest prices. Taxes, subsidies, quotas, and regulations result in reduced economic efficiency.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.