Chapter IX: Some calculations

We can define any academic, social performance into one generalized equation with respect to time.

P=performance

T=f(P)

Also, just like in the economy, an individual’s performance is regulated  by cycles.

A complete, constant cycle is the goal, which is close to perfection.

Now what is interesting is the concept of trade-off, or opportunity cost.

Regulation is a schedule, which is everything is organized, the optimum, the perfection.

How could the graph for perfection looks like? On the horizontal axis?

Time on the Y axis.

Now what is the interesting is how much can the person extend his output, to what limit.

Can total output (performance) be decreasing? Yes, when marginal performance is less than zero. Decreasing return to scale would be useful. Decreasing marginal performance will occur.

We assume 1 unit of “perform” = one unit of time. Also, we assume that cumulative output is always rising, day after day.

 

 

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