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Showing posts with the label alternative costs

Just my thoughts #0726

The good is the state of maintaining goodness itself, not the elimination of evil, and vice versa. Many see “maintenance of state” as proof of existence or non-existence. NO! Failing to maintain the state doesn’t create a new event; it simply allows the opposite to manifest. A single dichotomy can’t judge good and evil. Even in the Bible, it states that separating and removing the wheat and weeds can only happen when a singularity (harvest time, judgment day) occurs. Therefore, energy is needed to sustain a specific state until that singularity arrives. Energy comes from outside. Relationships with others are divided into those where energy is lost and those where energy is gained. - 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”