/sci/ - Science & Math » Thread #13439500

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Anonymous Tue 27 Jul 00:03:33 2021 No.13439500 View Reply Original Report

Quoted By: >>13439559 >>13439567 >>13439620

Does the owner of a small business really follow microeconomic models of production and consumption?
I dont think, so what does he base his decisions on?
I'm aware of the "as if principle".

Anonymous

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Anonymous Tue 27 Jul 2021 00:25:21 No.13439559 Report

Quoted By:

>>13439500
You know how in a game like chess your endgame is "winning" but you don't have the mental capacity to look at chess as purely a matter of brute-forcing winning, so you abstract away subgoals like "holding the center" or "taking the queen"?
It's really the same thing. The endgame of a businessman is mostly money (and prestige and pussy and whatever else). His subgoals are "expanding his business", "improving his reputation" and so on.

Anonymous

Anonymous Tue 27 Jul 2021 00:28:26 No.13439567 Report

Quoted By:

>>13439500
Does a dog follow the law of gravity?
I don't think so, what does he base his decisions on?

Anonymous

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Anonymous Tue 27 Jul 2021 00:50:34 No.13439620 Report

Quoted By: >>13439834

>>13439500
>Does the owner of a small business really follow microeconomic models of production and consumption?
No, but his actions can be explained by it if he is rational and a fine business man.
>so what does he base his decisions on?
The dispersed knowledge that he is aware of. Read Friedrich August von Hayek's work, The Use of Knowledge in Society.
>https://statisticaleconomics.files.wordpress.com/2013/03/the_use_of_knowledge_in_society_-_hayek.pdf

Anonymous

Anonymous Tue 27 Jul 2021 01:13:53 No.13439667 Report

Quoted By:

Starting out me and everyone I know that has gone solo are just worried about picking up enough work to get by.
Once you are past this and thinking about getting your first employee that is when accounting and business models start to form, you need to consider the cost, profit and risk involved in taking someone on.

Supply and demand is always a consideration, I wouldn't start producing something in the west that is currently mass produced in China as there is a fuckload of supply with very low overheads for the producer.
When I went solo electrical I was lucky that electricians were in short supply (still are) which lets me set my rates high in exchange for being able to do the job next week instead of in 3 months. I take on less work to avoid that backlog that costs my competition jobs, the downside is less security, the upside is increased rates and more freedom.

Anonymous

Anonymous Tue 27 Jul 2021 02:13:49 No.13439834 Report

Quoted By:

>>13439620
Based Austrilord.

El Arcón

El Arcón Tue 27 Jul 2021 04:55:24 No.13440163 Report

Quoted By:

A small business owner's choice between macro- and micro- ought to be determined by the number of accounts in his accounts receivable paperwork.

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