The selection of factor inputs which minimises the cost of producing goods and services to satisfy given wants, subject to resource and technological constraints. This allocation includes efficiency of both production and distribution. Setting out the...

A cost is generally understood to be that sacrifice incurred in an economic activity to achieve a specific objective, such as to consume, exchange, or produce. All types of organizations— businesses, not-for-profits, governmental— incur...

Allocative efficiency is the market condition whereby resources are allocated in a way that maximizes the net benefit attained through their use. Allocative efficiency refers to a situation in which the limited resources of a country are allocated in...