Like if Fred’s business costs $1m to start and creates $100k/year surplus value, it gets paid off in ten years
Oh, not quite. “Costs $1m to start” sounds like it’s talking about the cost to Fred. Some of that will be e.g. wages paid to construction workers. For this accounting to work, we need to talk about the costs to society versus the value to society. (The costs to society being similar to those from Tom’s shop—space, time and materials.)
Oh, not quite. “Costs $1m to start” sounds like it’s talking about the cost to Fred. Some of that will be e.g. wages paid to construction workers. For this accounting to work, we need to talk about the costs to society versus the value to society. (The costs to society being similar to those from Tom’s shop—space, time and materials.)