The importance of the economic efficiency principle

Greetings, colleagues back with more content from the economic world, both at the level of the economy, family unit, companies and organizations, you should have knowledge about the importance of the Economic efficiency principle, since it is based on the friend reader handling of economic models and the supesto of the economic world, where they are linked to the efficiency with which an economic system uses productive resources in order to satisfy its needs. According to Todaro, the concept means in matters of “production, to use the factors of production in combinations of lower cost, in consumption to comply with the law of scarcity and satisfy the needs of society.

As I mentioned earlier, either for a general economy, company, organization and family units, which is about seeking or achieving the necessary strategy so that one economic system is more efficient than another, in such a way that if it provides more goods and services for society using the same economic resources. It is necessary to be clear about the following that the most efficient combination of production factors will always be the one that allows it to produce at the lowest possible cost per unit.

The scope will be better when an economic system responds in the mid-term and long-term, thanks to the fact that in the mid-term it will benefit the producers of goods and services and in the long term it will benefit entrepreneurs, investors, since the inputs are variable, they are There are situations where production is fixed and when the production factors are varied affect levels, their cost structure of operations and optimization with minimal cost.

When referring to minimum costs, at a fixed level of production, its variation will depend on the available production factors (Force, capital and labor), that combination will be decisive which allows production, only by to produce more units at less cost, within the economic and business analysis the following should be considered: efficiency is defined as the relationship between the resources used in a project and the achievements obtained with it. Unlike the effectiveness refers to our ability to achieve what we propose.

The objectives of the economy are related to the increase in production and the optimal use of resources in an efficient way, everything reaches its own economic principles of the economy as a science.