"In the long run all producers are forced to use the most efficient methods or give place to others who do"

This quote by Frank Knight recommends that in the long run, services need to use the most efficient methods of production or danger being replaced by competitors. This is because companies that use the most effective techniques of production will have the ability to produce items and services at a lower cost, permitting them to offer lower rates and gain a competitive benefit. This will cause increased sales and profits, while services that do not use the most efficient approaches of production will be not able to complete and will eventually be displaced of the market. This quote highlights the value of efficiency in company and the requirement for organizations to constantly aim to improve their production techniques in order to remain competitive.