Which statement describes 'efficiency' in production?

Efficiency in production is best described as the optimal use of resources to produce outputs. This concept revolves around minimizing waste and maximizing productivity, ensuring that inputs such as labor, materials, and machinery are utilized in a manner that generates the highest possible output with the least amount of resources consumed.

In this context, efficiency focuses on achieving the desired results (outputs) while reducing unnecessary expenditures or wastefulness in the production process. By achieving efficiency, a firm can enhance its profitability and competitiveness in the market.

The other aspects mentioned, such as the absolute number of goods produced, the quality of goods, and employee satisfaction, although important in their own right, do not define efficiency directly. The number of goods produced is related to productivity but doesn't reflect how effectively resources are used. Quality pertains to how well the goods meet certain standards but does not measure the efficient use of resources. Employee satisfaction is vital for overall organizational health and can indirectly impact efficiency, but it does not capture the essence of how resources are managed in production. Therefore, the correct description of 'efficiency' aligns closely with the concept of optimal resource utilization to produce outputs.