Originally posted by Imran Siddiqui
For example (if you are being serious), the directives to 'make shoes' out of certain amount of leather resulted in abnormally high production of baby shoes, because it was easier to produce more of them from the same leather. Of course, what was needed was more adult shoes, but without real market forces (outside some farms) it wasn't gonna happen. Hence, reward inefficiency (because the managers would get bonuses).
For example (if you are being serious), the directives to 'make shoes' out of certain amount of leather resulted in abnormally high production of baby shoes, because it was easier to produce more of them from the same leather. Of course, what was needed was more adult shoes, but without real market forces (outside some farms) it wasn't gonna happen. Hence, reward inefficiency (because the managers would get bonuses).
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