Word of the Month

Word of the Month 2018-02-01T11:31:26+00:00

Optimality

'Optimality is reached when resources or productivity create maximal benefit with the least harm.' Significance: There are two different uses of the term optimality, both important.  One developed by Vilfredo Pareto describes the best possible allocation of resources. When Pareto Optimality is reached it is not possible to get more value by switching a pound from anyone budget to another.  Another term for this is allocative efficiency, which is different [...]