Doesn\'t productive efficiency (or any efficiency for that matter) vary per pers
ID: 1239380 • Letter: D
Question
Doesn't productive efficiency (or any efficiency for that matter) vary per person? In other words, isn't it true that what one person believes is productively efficient, might not be productively efficient to another? If this is the case, how do we evaluate productively efficient (or efficient in general)?From: Efficiencycan mean many things to many people. Even in economics, there are different types of efficiency. Here we are discussing productive efficiency. An economy is productively efficient whenever it is producing the maximum output with given tech-nology and resources.
Source:ISBN: 0132997118 | Title: Economics Today | Publisher: Prentice Hall
Explanation / Answer
Yes, you are correct. what one person believes is productively efficient, might not be productively efficient to another. But in all such cases, it is not the personal view of the person working or his coworkers to judge the productivity. There are often institutional norms depending on the sector which are used to quantify productive efficiency. These norms are well thought off and act as standard. These benchmarks eliminate the variation of definition by individuals.
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