Efficiency criterion as a counterweight to successful business

Abstract

One of the central problems of the theory of efficiency is the development of a criterion indicator of the economic efficiency of production that reflects the aggregated effectiveness of production. The need for such an indicator is due to the fact that the system of private indicators of efficiency does not allow for a full reflection of the efficiency of production.
In economic practice, cases are not uncommon when one group of efficiency indicators improves, while the other group worsens. Moreover, even in conditions of progressive economic development, a decrease in some efficiency indicators, for example, capital losses, is a regular phenomenon. In this case, only the criterion of economic efficiency provides an answer to the question of what is the main trend in the movement of the economic efficiency of national production as a whole or of a firm.