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Showing posts with the label alternative costs

Just my thoughts #0600

The universe we live in is empty mainly in terms of matter density. The protons and neutrons that constitute matter are called baryons, and approximately one proton exists in a space of 19.8 square meters. However, when the universe expands rapidly, the cosmic background radiation, known as a photon, is produced, resulting in two billion more photons in a grain of light. Since this light is a microwave, which has low energy and a long wavelength, it cannot be seen by the human eye. Therefore, humans, who only perceive visible light, consider the universe and the night sky to be dark. If there were aliens capable of seeing microwaves, the universe would be shining very brightly. The truth is that nothing has changed, but if the standards shift, it’s an entirely different story. - Joseph’s “just my thoughts”

Just my thoughts #0070

In business, capital means business funds. A successful entrepreneur often says, "I started my business without any capital". It's partly true, but it's a lie. The entrepreneur just said that capital means only cash. However, all kinds of businesses need to be fundamentally business funds in any even not cash. The entrepreneur didn't count the founder's labor cost. No inputs, no outcomes. The uncounted labor costs are called "alternative costs" or "opportunity costs". This comes from comparative advantage. If the entrepreneur doesn't accept the uncounted labor cost as a debt, the entrepreneur is equivalent to losing the profit due to opportunity costs. Please always remember this. There is no free lunch in this world. - Joseph’s “just my thoughts”