Final answer:
Efficiency in business is not solely about the quantity of output but also involves minimizing waste and optimal use of resources, known as productive efficiency, especially significant in perfectly competitive markets.
Step-by-step explanation:
The statement that efficiency in business is only concerned with the quantity of output is false. Efficiency entails not just the quantity of the output produced but also the optimal use of inputs while minimizing waste. This concept is encapsulated in productive efficiency, which means producing goods and services without any waste and making choices that lie on the production possibility frontier. In a perfectly competitive market, this leads to firms producing at the lowest possible average cost over the long run, as the market price equals the minimum point of the long-run average cost curve. False
Efficiency in business is not only concerned with the quantity of output, but also the quality and cost of production. Efficiency in business refers to how well resources are utilized to achieve the desired goals. It involves maximizing productivity while minimizing waste and expenses. For example, a business that produces a large quantity of low-quality goods at a high cost would not be considered efficient.