Efficiency is a measure of how well a system or process is performing in relation to its input. It is a measure of how much output is produced from a given amount of input. In the context of a business, efficiency is often used to measure how efficiently resources are being used to generate profits. Efficiency can be measured in terms of time, money, materials, energy, or any other resource. The equation of efficiency is a mathematical expression that describes the relationship between input and output. It is typically expressed as a ratio of output to input, and can be used to compare different systems or processes. The equation of efficiency can be used to identify areas where improvements can be made to increase the efficiency of a system or process. By understanding the equation of efficiency, businesses can make informed decisions about how to best use their resources to maximize profits.