Technical or productive efficiency involves firms producing at the lowest possible long run (average) costs.  It will typically mean that productivity is at a maximum and is represented by the economy producing at any point along its PPC.  It means that all resources or factors of production are producing the maximum amount of goods and services that is possible (i.e. productive capacity has been reached).  All points along the PPC are technically efficient, regardless of what combination of goods and services are produced.  Any government efforts to increase the ability of the nation’s resources to produce more or better goods and services will require an improvement in technical efficiency.