Economic efficiency and profitability

The oil and gas lease under homestead law would simply be the right to conduct drilling operations on a person s surface property. The lease would not constitute a claim to minerals found under a particular surface area as under the rule of capture rule. Since the resci voir could be reached from different surface locations with slant drilling, the economic rent of a homestead lease would be far less than the value of a capture-rule lease. The difference in value would accrue to the driller-finder, thereby encouraging production by making drilling more efficient and profitable. 

While efficiency dictates that different prices are charged in different markets, observable price differentials are not always due to reasons of economic efficiency or profit-maximization. Pharmaceutical prices are widely subject to nation-specific government regulation and a host of other factors. Bale (1998) provides a comprehensive review of potential reasons for price differences across countries. These include differences in such factors as IPR regimes, product liability laws, inflation rates, exchange rates, governmental price controls, per capita income, and regulatory systems. 

If the utilitarian state could not see the real, existing forest for the (commercial) trees, if its view of its forests was abstract and partial, it was hardly unique in this respect. Some level of abstraction is necessary for virtually all forms of analysis, and it is not at all surprising that the abstractions of state officials should have reflected the paramount fiscal interests of their employer. The entry under forest" in Diderot s Encyclopedie is almost exclusively concerned with the utiliti publique of forest products and the taxes, revenues, and profits that they can be made to yield. The forest as a habitat disappears and is replaced by the forest as an economic resource to be managed efficiently and profitably. Here, fiscal and commercial logics coincide they are both resolutely fixed on the bottom line. 

Quality, economic efficiency and, more and more, ecological methods are the prerequisites for up-to-date production in the dye house. Color shade and depth must be attainable, and there should be adequate levelness and accurate fastness properties. Appropriate mechanical and chemical processing is necessary to suit customer requirements as well as to create the required fabric with hand-and-surface characteristics. Economical and ecological efficiency involves minimization of costs and maximum profitability as well as reproducible quality with minimal enviromnental damage. Therefore, process optimization is a must to fulfil all parameters and requirements for right-first-time production. Western wet-finishing costs are more and more apparent in various Asian countries as well and can be divided into the following approximate cost proportions ... 

Based on the information flow, a number of information-theoretical performance quantities can be derived, and some important ones are compiled in Table 9.2. The information performance of analytical methods can be related to the information requirement of an given analytical problem. The resulting measures, information efficiency and information profitability, may be used to assess economical aspects of analytical chemistry. 

Removing profit would lead to the right conclusion, analytically, but what advice does it give decision makers If economic profits are indeed positive, but the decision on whether or not to permit firms to develop and introduce a new product is based on AWP less above-normal profits, more products will be judged to be effective than if AWP had been used. But if firms are in fact reimbursed at AWP, their expected profit from investment in R D will rise. The products firms are thus induced to develop because of the excess profits may not be efficient, and, from the standpoint of economic efficiency, they should not be produced. Yet the price signals will be telling firms to invest. Some method will need to be found to resolve this conflict. Efficient decisions based on correct cost-effectiveness analysis may well conflict with the price signals that may follow for implementation of those decisions. This is an issue for both country U and country T. 

In the interview relating to the experience of Chemical Leasing application the General Director of the service provider underlined that the new business model was beneficial for the company in respect of economic profit and opportunity for a most effective introduction of innovations and know-how. The Deputy Technological Manager of the company using the service indicated that the new business relationship was economically beneficial and provided the fastest and mostly efficient approach to solve environmental problems that the company had been facing before. 

In the last years the Austrian Ministry of Environment made every effort to promote innovative ways of chemicals management based on resource efficiency as well as on precaution. Applying Chemical Leasing", profits do not result from the quantity of chemicals sold, but rather from the services rendered by means of the chemicals. If business interests are no longer related to the sale of chemical substances it is in the interest of all the parties involved, to use the substances with maximum efficiency. This clearly is the environmental policy motivation for this new focus, which ensures that economic success and ecological benefits are no longer contradictory. 

In summary, advertising can represent an efficient and economical method to prospect for business and to find areas of profitable interest. It must be coordinated, however, with other functions in marketing for optimum results. 

In order to satisfy the changing pattern of product demand, significant investments in refining conversion processes will be necessary to profitably utilize the heavy oils and residua. The most efficient and economical solution to this problem will depend to a large extent on individual refinery situations. However, the most promising technologies will likely focus on the conversion of vacuum residua and extra-heavy crude oils into useful low-boiling and middle distillate products. 

Profit is defined as the difference between income and expense. Therefore, profit is a function of the quantity of goods or services produced and the selling price. The amount of profit is also affected by the economic efficiency of the operation, and increased profits can be obtained by use of effective methods which reduce operating expenses. 

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