Resource Utilization Efficiency: Beyond the Neoclassical Paradigm

Economists widely recognize the crucial role of efficient resource utilization. The dominant neoclassical paradigm posits that producers invariably operate at peak efficiency. However, this theoretical assumption diverges from empirical observations. In practice, two firms with identical characteristics never produce identical products, nor do they share the same cost structures or profit margins. This discrepancy highlights the limitations of the neoclassical framework and underscores the need for models that better reflect the complexities of real-world production processes.