)For Harberger's assumed value of demand elasticities, the cost of the resources that would be required to achieve the efficient change in an industry's rate of production is equal to the calculated excess profits in that industry.Using the formula developed by Harold Hotelling, Harberger measured the efficiency loss from noncompetitive pricing in each industry as the excess of the implied willingness to pay by consumers for each increment to output over the estimated cost of that increment.