Every company today wants productivity efficiency so that they can get as much output as possible from a given amount of inputs or resources. Because as a company grows they want to be able to achieve as much output as possible from a limited amount of inputs or resources. It all depends upon technology, because the better the technology the more resources are discovered or if the economic institutions get better at filling our wants we will get more outputs with the same inputs.
Now when you get into the method of distribution this will either help your company or it can have a negative affect on your company. Our society prefers more compared to less, which is important to remember that the assumption, which the shorthand is used; the distribution effects of a company and the policy aren’t undesirable and we, as a society prefer more output. Every society wants to be on the frontier of their production curve. Every company has to keep in mind to produce goods for which they have a comparative advantage. It all depends upon a companies management, will they hire an employee in human resources with good people skills, or will they hire an employee with good researching abilities in research and development. There is always some type of trading going on in companies today and you want to make sure you have the appropriate people in the right departments to maximize your outputs.
Trade is when two or more people freely enter into a trade where both parties can be expected to gain from the trade, otherwise they wouldn’t be trading in the first place. It’s just like when you go to the store and purchase bread from the bakery. The baker is better off with your money so that he can continue to sell more bread to earn a profit. The best time to ...