What is the difference between Technical Efficiency and Economic Efficiency?

These are terms that are normally used in production. When you say technical efficiency, this means that you would be able to make a few inputs in order to produce an output. When you say economic efficiency, this means that you would like to use a type of method that will make sure that you will have the ability to get the output that you want without increasing the cost that you have to pay for.

When you say that someone is technically efficient, this means that the person does not need to have resources. They just need to have the right skills in order to do things properly to maximize the output that will be available.

Technical efficiency occurs when there is no possibility of raising the input. Economic productivity happens when the production cost of output is the lowest it can be. Financial ability mainly depends on the prices pertaining to the aspects of production. Technical efficiency is deemed an engineering issue. It is also said that some factors that are technically effective might not be economically efficient.

As far as technical capability is concerned, it is evident that the natural resources are altered into services and goods, minus the waste. In technical efficiency, the workers are always active and thriving. The maximum output is obtained from the input of resources. This output means that the production and the result is procured at the lowest available cost. It is only when technical efficiency occurs that technical efficiency can be achieved.