Pay It Forward... A Revolution Begins

Saturday, October 01, 2005

the production problem of an individual

In this scenario, i intend to open up the ceteris paribus assumption on marginal production theory and add many new variables. it help an individual determine his resource allocation in conjunction with benefits. what we have examine in theory is a summation of individual production. but what factor determine an individual production line? In fact, for this problem, the issue of maximisation and satisfaction can be brought in together for discussion. So is karma. But i guess, that is for einstein's level of craziness. for tianyu's level, we will just stick to this. A normal graph will be a graph of output vs effort. The more effort you put in, the more output you get until diminishing returns start setting in. BUT, is effort the only factor in output? obviously NO. So introduce 2 new factors. Stress and fatigue. Yep, another 3-d graph again. This time we have arrow going in the negative x-plane direction like in the LM-IS analysis graph (heck the LM IS part, its just something used in macro, and don't ask me how i know, ok?) In the negative y plane, i am introducing another variable, which is called rest. Finally, in the negative z-plane, we have wage. ( the magic to this is how equilibrium can be changed as we changed the assumption in this plane).
Ok, here's another summary. Positive x plane: effort. Positve Y plane: output. positive z plane: fatigue. negative x plane: stress. negative y plane: rest. negative z plane: wage.
now with a more complicated graph, we have linked up the correlation between all the variable. We can play around with assumptions more fully and see how it affect output. eg... different people react differently to stress, fatigue level and stuff, all these factors are factor we assumed are constant in ceteris paribus.

do you people wanna combine this with the above crazy idea?haha... think i oughta to be shot.

posted @ 5:39 PM ||