An economy is producing efficiently when all factors of production are used in their most productive capacity.

Name: An economy is producing efficiently when all factors of production are used in their most productive capacity.
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An economy is considered to be producing efficiently when all factors of production (land, labor, capital, and entrepreneurship) are being used in a way that maximizes output or productivity, leaving no resources wasted or underutilized.

An Economy Is Producing Efficiently When All Factors of Production