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:
Option B = producing a given output with the lowest cost of combination of factors of production
Explanation
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.
