Mises insisted that in making economizing decisions about the use of resources in an extended division of labor, it is necessary to disentangle the contribution of each complementary factor of production used in producing each good The necessity arises because factors of production are neither perfectly specific to each good nor perfectly non-specific among all goods.
Therefore, to know whether or not a particular configuration of complementary factors of production will be more economizing for society than another configuration, prices of individual factors of production must exist.
Mises concluded this line of inquiry by returning to the starting point in Robinson Crusoe, i.e., production in self-sufficiency instead of a division of labor Crusoe could compare the value of output with the value of the complementary factors used because the possible combinations he can exploit are simple enough for him to impute value adequately for economizing (6) He wrote (Mises, 1998, p.
Caption: FIGURE 2 Psychrometric chart illustrating increased waterside economizing
hours with medium-temperature chilled water.
First-order economizing eliminates "bloat" (Williamson, 1994)--wasteful practices, poor organization, and excessive organizational slack.
This resource-based treatment of adaptation not only speaks to the issue of economizing but remains consistent with IO economic views on efficiency.
Market theory carries the message of the importance of economizing efficiency but fails to explain how to achieve it in the world of reality.
The market can and does help set prices that function as cues facilitating economizing under conditions of scarcity.
A key to economizing is to think not in terms of purchasing, but in terms of acquiring.
By understanding that economizing does not mean saving money but investing it wisely, guerrillas test their investments on a small scale before plunging headlong into any kind of marketing.
Thus the concept of economizing at the center of Robbins's analysis is, according to Kirzner (1979, p.
Corresponding to Robbinsian economizing at the level of the individual, we have market general equilibrium....
Frederick makes an interesting distinction between growth based on successful economizing
and expansion based on predatory merger and acquisition activity (p.
Such workshops have become the focal point of officials in terms of ensuring saving and economizing on water and electricity resources provided to consumers in the GCC-member States and developing work in the relevant Electricity and Water organizations in terms of domestication of knowledge and benefitting from practical applications of various concepts.
The meeting also discussed two reports compiled by both teams assigned by the Committee to study customer service and economizing on electricity and water and also reviewed future working plans submitted by both teams for the years 2013-2015.