Increasing efficiency

• When production happens at a overall min average cost
• Increasing productivity


  Can increase efficiency
• Cutting costs


  • Businesses can improve their efficiency by cutting the variable costs (e.g. materials or wages) or fixed costs (e.g. rent) involved with the production of a product
• Reconsidering product design mix


  Businesses may reconsider a product's design mix so that it's easier or cheaper to make
• Adopting lean production


  A business may adopt a lean production approach, which is when they focus on minimising waste to reduce the costs of making a product