Skip to main content

Posts

Showing posts with the label alternative costs

Just my thoughts #0646

Humans believe they are thinking, but they cannot artificially interfere with their thought processes. This means you cannot deliberately manipulate human consciousness. While memory can be artificially altered, thinking processes cannot. If it were possible, the individual might be a psychopath. Human consciousness is governed by the unconscious. So, if you want to solve an unresolved problem, don’t focus on it directly; instead, briefly use your consciousness, and then the unconscious will handle it. Over time, at the right moment, the unconscious offers a solution to the conscious mind. Inspiration occurs at this point. Therefore, don’t get too caught up in it. Also, give your brain a rest. That’s why sleeping and sometimes being dazed are so important for creative inspiration. - 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”