Efficient utilization of resources is the basic principle of economics. In line with this for those who are engaged in production, should think about their efficiency to boost production and productivity. With this end, working on improving Technical and Allocative efficiency enables the business productive and profitable. Hence, good knowledge on this subject matter has a vital importance. By doing so, this book helps to understand the basic principles and applications of Technical and Allocative efficiency for any body who has interest on this area.