Technical efficiency in production means that the company uses as few as possible inputs to produce a particular output. On the other hand, economic efficiency means that a company adopts one specific method that will create a given level of production at the lowest possible cost.
Profit maximization is the primary goal of any business or firm. Profit maximization, therefore, can be defined as a decrease in input and an increase in output. A firm can say that is has met the profit maximization objective if it gets to a level when the marginal revenue is equal to the marginal cost.
Nonetheless, to achieve profit maximization, a company or firm is obliged to sell more as well as cut the costs. In regards to selling more of the goods or services, the company ought to come up with various strategies such as intensive marketing and diversification, such as to reach a large number of potential customers.
On the other hand, cutting on the cost is another way that firms can use to achieve profit maximization. Cutting on the cost includes negotiating for lower prices from the suppliers and outsourcing, among other means. All these ways are aimed at reducing the cost of production and related costs and increase the company's revenue.