ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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On the Concept of Efficiency

On the Concept of Efficiency Prabhat Patnaik While a vectorwise larger output for given endowments would constitute an improvement in the efficiency of resource use, such an improvement does not follow from the replacement of an activity set with a lower marginal rate of transformation of one set of goods into another by another activity set with a higher rate. It would follow if the economy always had full employment of resources, but it does not; hence the two perceptions of efficiency are not synonymous.

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