In the long run, a firm must choose to either be effective or efficient, because it is impossible to achieve both objectives consistently within the same organization .

Question

Quizplus · Accepted Answer

While there may be trade-offs between effectiveness and efficiency, it is possible for a firm to strive towards both objectives and find a balance between them. In fact, many successful organizations prioritize both effectiveness (i.e. achieving desired outcomes) and efficiency (i.e. using resources wisely) in their operations.

In the Long Run, a Firm Must Choose to Either