Resource Allocation Theory

Resource Allocation Theory is a concept in economics and management that explains how resources—like time, money, and labor—are distributed among various uses to maximize efficiency and output. It suggests that organizations and individuals must make decisions on how to best allocate limited resources to achieve their goals. By analyzing costs, benefits, and priorities, they can optimize their strategies to enhance productivity and ensure that resources are used where they have the greatest impact, whether in business, project management, or policy-making.