Isn't everyone in search of efficiency? Maximizing everything to it fullest potential.
Eliyahu Goldratt's The Goal certainly laid the ground work for developing process efficiency in manufacturing. Is this the same type of efficiency economists are referring to when discussing maximizing the total surplus received by all members in an economy and achieving economic well-being. Obviously what economist expect to achieve is that the amount paid by buyers equals the amount received by sellers. It seems clear that is ideal. Is that achievable?
Unfortunately I am not sure I really understand. It appears the goal is to pinpoint the balance in cost of production of a product, the sale of said product and weather or not there is any interest or need for the product. I guess that is what everyone is trying to figure out. Is the example of green beer on St. Patricks Day explain this? Maybe that is more of a supply and demand thing. If cost is to high, price may be to high reducing the products value to the customer (they wont buy it). However, if a manufacture can reduce the cost of production it may increase the value of the product to the customer. These differences shift above and below the equilibrium price as it seeks to maximize the total surplus of the product available.
Is that maximum efficiency attainable? As efficiency goes I suspect it should be the goal it appears it works best as equilibrium price has been achieved and no other variable interferes with is natural fluctuation of things obviously there is a balance between the buyers willingness to pay and the cost to produce a good.
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