commissioner.org
| Source | Sara Lacher |
| Date | 01/09/12/12:32 |
| According to Friedman...
Efficiency is broken down into three areas of interest; Allocation, Production, and Quantity. Allocation has to do with moving the product around to the consumers. Some consumers will pay MV for goods, and others will not pay MV and instead chose to buy something else. Production is using resources to make products/goods that can be useful to a consumer. The most efficient way of producing goods is maximum output at minimum cost(of production). One way of improving production after this, is, producing more quantity. To do this there would have to be improvments in technology, or a rise in resources. Quantity is the amount of one good. These three variables make up efficiency, everything else confuses me. See you tonight... |
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