Economic
efficiency is a partial
objective for decision-making. It asks for the minimal input to reach a certain
effect or – with other words – for the maximal effect under a given input.
Together with
its twin economic effectiveness we can assess the economic suitability
that is one sub-objective to find the optimal option. Parallel to the economic suitability
we also should look at the ecological and the social suitability. For more information
about systematics of decision-making, look at objectives and three-step
model of optimization.
For any real process, after finishing and collecting all costs the efficiency of the process can be measured. But in advanced, we must calculate the costs with a lot of uncertainties. To do this, the engineer formula is a method to calculate the costs as likely as possible.
