Shown here in the diagram on the left are the contributions to a MOSFET's RDSON. RDSON is the resistance between a MOSFET's drain and source when on. Power loss through conduction is proportional to RDSON, and a lower RDSON will reduce the power loss across the MOSFET which increases the circuit's overall efficiency.
 
                 
                 
                 
 
 
 
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