ANSWERS: 2
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You can be as efficient as you want - if your product is not useful, you will not make any success. An example: Say you make a medicine for a particular disease. If it is ineffective, it is worthless - no matter how efficiently you make it. Certainly efficiency is important, especially when you look at cost of goods produced and the supply-demand-price curves. But effectiveness is paramount.
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Both are important, but each has a downside (especially if you're effective in the wrong way!). I've also seen people who are very efficient, but lack the knowledge to be effective.
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